Buy Gujarat Gas, target price Rs 620: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Gujarat Gas with a target price of Rs 620. The current market price of Gujarat Gas is Rs 510.

Gujarat Gas, incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 35107.90 Crore) operating in Gas & Petroleum sector.

Gujarat Gas key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3853.27 Crore, down -6.62 % from last quarter Total Income of Rs 4126.38 Crore and down -26.97 % from last year same quarter Total Income of Rs 5276.48 Crore. Company has reported net profit after tax of Rs 371.26 Crore in latest quarter.

The company’s top management includes Mr.Pankaj Kumar, Mr.Sanjeev Kumar, Mr.Milind Torawane, Prof.Yogesh Singh, Mr.Bhadresh Mehta, Mr.Raj Kumar, Mr.Balwant Singh, Dr.Rekha Jain. Company has Manubhai & Shah LLP as its auditors. As on 31-12-2022, the company has a total of 69 Crore shares outstanding.

Investment Rationale
The brokerage maintains Buy on the company with an increased price target (PT) of Rs. 620, as the valuation of 16x its FY2025E EPS is attractive considering robust long-term volume-led earnings growth outlook.

Promoter/FII Holdings
Promoters held 60.89 per cent stake in the company as of 31-Dec-2022, while FIIs owned 5.17 per cent, DIIs 12.55 per cent.