iStock has add call on Gujarat Gas with a target price of Rs 535. The current market price of . is Rs 500.15. Time period given by analyst is one year when Ltd. price can reach defined target.
Gujarat Gas Ltd., incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 33538.37 Crore) operating in Gas & Petroleum sector.
Gujarat Gas Ltd. key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 5322.23 Crore, up 11.09 % from last quarter Total Income of Rs 4791.04 Crore and up 72.40 % from last year same quarter Total Income of Rs 3087.21 Crore. Company reported net profit after tax of Rs 381.12 Crore in latest quarter.
Investment Rationale
The brokerage believes the potential of all the in-development and newly developed areas mentioned above, remains material and can support 11-12% volume CAGR over the next 7-8 years (including ~5% normalised growth from Morbi). Current margin profile is vitiated by a record divergence in LNG and LPG prices, but it feels normalisation of the same is long overdue and will likely happen over the next 18-24 months, creating sourcing cost comfort. Nevertheless, the near-term headwinds on volumes and margins are too strong to be ignored, hence it remains cautious of growth over the next 12 months. It has revised FY23E / FY24E EPS by -0.1 / -2.3% and reduced the target price to Rs535/sh.
Promoter/FII Holdings
Promoters held 60.89 per cent stake in the company as of 30-Jun-2022, while FIIs owned 5.18 per cent, DIIs 10.01 per cent.
Gujarat Gas Ltd., incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 33538.37 Crore) operating in Gas & Petroleum sector.
Gujarat Gas Ltd. key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 5322.23 Crore, up 11.09 % from last quarter Total Income of Rs 4791.04 Crore and up 72.40 % from last year same quarter Total Income of Rs 3087.21 Crore. Company reported net profit after tax of Rs 381.12 Crore in latest quarter.
Investment Rationale
The brokerage believes the potential of all the in-development and newly developed areas mentioned above, remains material and can support 11-12% volume CAGR over the next 7-8 years (including ~5% normalised growth from Morbi). Current margin profile is vitiated by a record divergence in LNG and LPG prices, but it feels normalisation of the same is long overdue and will likely happen over the next 18-24 months, creating sourcing cost comfort. Nevertheless, the near-term headwinds on volumes and margins are too strong to be ignored, hence it remains cautious of growth over the next 12 months. It has revised FY23E / FY24E EPS by -0.1 / -2.3% and reduced the target price to Rs535/sh.
Promoter/FII Holdings
Promoters held 60.89 per cent stake in the company as of 30-Jun-2022, while FIIs owned 5.18 per cent, DIIs 10.01 per cent.
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