Motilal Oswal is bullish on Gujarat State Petronet has recommended buy rating on the stock with a target price of Rs 902 in its research report dated November 04, 2018.
Motilal Oswal's research report on Gujarat Gas
GUJGA reported significantly lower EBITDA of INR1.6b (-21% YoY, -35% QoQ) compared to our estimate of INR2.4b, primarily due to its inability to pass on increased raw material cost to the consumers. PAT came in at INR411m (our estimate: INR941m; -33% YoY, -66% QoQ).
Outlook
We value IGL at 27x FY20 EPS. Due to higher volatility in volume and margins, we value Gujarat Gas at a 10% discount to IGL. Valuing GUJGA at 24.3x FY20E EPS of INR37.1, we reiterate our Buy rating with a target price of INR902 (prior: INR998).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
