Angel neutral on Gujarat Gas

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Angel Securities has recommended neutral rating on Gujarat Gas Company , in its March 09, 2010 research report.

"Gujarat Gas (GGAS) 4QCY2009 numbers came in line with our expectation on the Bottom-line front, increasing by 43% yoy to Rs 46 crore (Rs 32 crore) as against our expectation of Rs 47 crore. The company's Gross Gas spread touched an all-time high of Rs 4/scm during the quarter (which was also achieved in 2QCY2009), as against Rs 3.5/scm registered in 3QCY2009. Volume growth came on the back of substantial RLNG volume (20% of total gas sourced) flow during the quarter."

"At Rs 260, the stock is trading at 15.5x CY2010E and 12.7x CY2011E Earnings. On account of the recent run-up in the stock price, we recommend a Neutral on the stock," says Hem Securities research report.

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