ICICI Direct's research report on Gujarat Gas
Gujarat Gas’ Q4FY21 results were ahead of our estimates on the operational and profitability front. Revenues increased 28.6% YoY to Rs 3428.9 crore (our estimate: Rs 3465.1 crore) as sales volume jumped 22% YoY during the quarter. Sales volume at 12.1 mmscmd was above estimate of 11.7 mmscmd. Realisation was at Rs 31.4/scm (our estimate: Rs 32.9/scm). Gross margins at Rs 7/scm were in line with expectations. EBITDA was at Rs 554.3 crore (up 29.9% YoY) above our estimate of Rs 507.3 crore on account of better operating leverage. Subsequently, reported PAT increased 42.3% YoY to Rs 349.9 crore, above our estimate of Rs 302 crore.
Outlook
We maintain BUY rating on Gujarat Gas with a revised TP of Rs 655 (26x FY23E EPS, earlier TP Rs 505/share).
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