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HDFC Securities has add call on Gujarat State Petronet Ltd. with a target price of Rs 340. The current market price of Gujarat State Petronet is Rs 298.1. Time period given by analyst is one year when Gujarat State Petronet Ltd. price can reach defined target.
Gujarat State Petronet Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 16844.53 Crore) operating in Gas & Petroleum sector.
Gujarat State Petronet Ltd. key Products/Revenue Segments include Income From Transportation Services, Electricity and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4181.81 Crore, up 21.24 % from last quarter Total Income of Rs 3449.24 Crore and up 39.13 % from last year same quarter Total Income of Rs 3005.58 Crore. Company reported net profit after tax of Rs 490.33 Crore in latest quarter.
Investment Rationale
The brokerage's ADD rating on Gujarat State Petronet with a TP of INR 340 is premised on (1) transmission volume growing at +6% CAGR over FY21-23E to 41mmscmd, with increase in gas supply from domestic sources, which should drive volumes and translate to growth in standalone EBITDA at 11% and APAT at 15% CAGR to INR 18bn and INR 12bn in FY23E and (2) compelling valuation at 7.8x FY23E EPS, considering high RoE of 23% in FY23E and combined FCF of INR 50bn over FY22-24E.
Promoter/FII Holdings
Promoters held 37.63 per cent stake in the company as of 31-Dec-2021, while FIIs owned 16.61 per cent, DIIs 21.61 per cent.
Gujarat State Petronet Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 16844.53 Crore) operating in Gas & Petroleum sector.
Gujarat State Petronet Ltd. key Products/Revenue Segments include Income From Transportation Services, Electricity and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4181.81 Crore, up 21.24 % from last quarter Total Income of Rs 3449.24 Crore and up 39.13 % from last year same quarter Total Income of Rs 3005.58 Crore. Company reported net profit after tax of Rs 490.33 Crore in latest quarter.
Investment Rationale
The brokerage's ADD rating on Gujarat State Petronet with a TP of INR 340 is premised on (1) transmission volume growing at +6% CAGR over FY21-23E to 41mmscmd, with increase in gas supply from domestic sources, which should drive volumes and translate to growth in standalone EBITDA at 11% and APAT at 15% CAGR to INR 18bn and INR 12bn in FY23E and (2) compelling valuation at 7.8x FY23E EPS, considering high RoE of 23% in FY23E and combined FCF of INR 50bn over FY22-24E.
Promoter/FII Holdings
Promoters held 37.63 per cent stake in the company as of 31-Dec-2021, while FIIs owned 16.61 per cent, DIIs 21.61 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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