Leading global brokerage firm UBS upgraded Gujarat Gas shares to neutral from sell amid the improved outlook on volumes and margins due to latest correction in LPG prices.
Soon after the upgrade, Gujarat Gas shares zoomed 3.15% intraday today on BSE to settle at Rs 565.95 apiece. The international brokerage house has upgraded the target price of Gujarat Gas stock to Rs 610 apiece. If you plan to buy Gujarat Gas shares at last trading price of Rs 565.95 apiece, you can fetch potential gain of 7.78%. Gujarat Gas shares zoomed 17% year-to-date and surged 31% in last 3-months. Check details below:
Gujarat Gas shares performance & Return: The 52-week high price of Gujarat Gas shares on BSE is Rs 620.60 apiece and 52-week low price is Rs 397.20 apiece, respectively. The company has a market capitalisation of Rs 38,959.44 crore. Gujarat Gas shares zoomed 23% in last 6-months, gained 12% in last 1-year, and offered return of 378% in last 5-years.
UBS Views On Gujarat Gas Shares: The international brokerage firm raised the FY25-26E volume estimate by 9% (industrial volumes by 16%) and gross margin by 4-8%, that will lead to a 19-24% higher EBITDA. UBS stated that a further fall in spot LNG prices to 2019-20 levels (USD 5.0/mmbtu) poses upside risks to earnings. It said that the improved near-term outlook has already been reflected and risk-reward looks balanced, after nearly 17% gain in 2024 (year-to-date or YTD).
Gujarat Gas Financials: The PSU on February 13 declared a decline of 40% in its consolidated net profit to Rs 221 crore for the third quarter of the FY 2023-24 as against the the year-ago period. Sequentially, net profit declined 25%. Gujarat Gas announced its net profit at Rs 371 crore in the corresponding quarter of last year. Meanwhile, its revenue from operations soared nearly 7% during the quarter to Rs 4,084 crore for FY 2023-24 as against Rs 3,821 crore in Q3FY23.
For the quarter ended December 31, its sales volumes soared by 26% to 9.16 mmscmd (million metric standard cubic metre per day) from 7.29 mmscmd last year. Gujarat Gas’ industrial sales volumes surged to 5.53 mmscmd for the quarter under review from 4.05 mmscmd in the year-ago period, up 36%.
About: Gujarat Gas Limited (GGL) is India’s largest City Gas Distribution (CGD) Company in terms of sales volume operating in 44 districts in 6 states of Gujarat, Maharashtra, Rajasthan, Haryana, Punjab & Madhya Pradesh and 1 Union territory of Dadra & Nagar Haveli. GGL continues to hold the leadership position in CGD industry in terms of size and scale of operation. The Company operates more than 815 CNG stations and has connected more than 20.5 lakh households, over 14,900 commercial customers and 4,375 industrial customers.
