Motilal Oswal has a buy call on Gujarat State Petronet with a target price of Rs 400. The current market price of Gujarat State Petronet is Rs 298.05.
Gujarat State Petronet Ltd, incorporated in the year 1998, is a mid cap company with a market cap of Rs 16,333.92 crore, operating in gas & petroleum sector.
Gujarat State Petronet's key products/revenue segments include income from transportation services, electricity, Compressed Natural Gas (CNG) and other operating revenue for the year ending 31-Mar-2020.
Investment rationale
Gujarat State Petroleum (GUJS) has a debt of Rs 11.4 billion at present. The management targets to become debt free in the next 3-4 quarters. It could reward shareholders by increasing its dividend payout from ~12-13 per cent at present (the company has an interest cost of ~Rs 1 billion – similar to dividend payments).
Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 3,306.35 crore, up 10.01 per cent from last quarter's total income of Rs 3,005.58 crore and up 8.38 per cent from last year same quarter's total income of Rs 3,050.75 crore. Company has reported net profit after tax of Rs 637.38 crore in latest quarter.
Promoter/FII Holdings
Promoters held 37.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 15.9 per cent, DIIs 31 per cent and public and others 15.4 per cent.
Gujarat State Petronet Ltd, incorporated in the year 1998, is a mid cap company with a market cap of Rs 16,333.92 crore, operating in gas & petroleum sector.
Gujarat State Petronet's key products/revenue segments include income from transportation services, electricity, Compressed Natural Gas (CNG) and other operating revenue for the year ending 31-Mar-2020.
Investment rationale
Gujarat State Petroleum (GUJS) has a debt of Rs 11.4 billion at present. The management targets to become debt free in the next 3-4 quarters. It could reward shareholders by increasing its dividend payout from ~12-13 per cent at present (the company has an interest cost of ~Rs 1 billion – similar to dividend payments).
Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 3,306.35 crore, up 10.01 per cent from last quarter's total income of Rs 3,005.58 crore and up 8.38 per cent from last year same quarter's total income of Rs 3,050.75 crore. Company has reported net profit after tax of Rs 637.38 crore in latest quarter.
Promoter/FII Holdings
Promoters held 37.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 15.9 per cent, DIIs 31 per cent and public and others 15.4 per cent.
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