Failed to connect to MySQL: Too many connections Buy Gujrat State Petronet; target of Rs 184: Edelweiss - Moneycontrol.com

Buy Gujrat State Petronet; target of Rs 184: Edelweiss

Edelweiss is bullish on Gujrat State Petronet has recommended buy rating on the stock with a target price of Rs 184 in its research report dated November 30, 2016.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney master your money IThe Winning Leap SME Special
Moneycontrol

Home » News » Recommendations

Dec 01, 2016, 05.57 PM | Source: Moneycontrol.com

Buy Gujrat State Petronet; target of Rs 184: Edelweiss

Edelweiss is bullish on Gujrat State Petronet has recommended buy rating on the stock with a target price of Rs 184 in its research report dated November 30, 2016.

Like this story, share it with millions of investors on M3

Buy Gujrat State Petronet; target of Rs 184: Edelweiss

Edelweiss is bullish on Gujrat State Petronet has recommended buy rating on the stock with a target price of Rs 184 in its research report dated November 30, 2016.

Post Your Comments

Share Cancel

(more)

, Edelweiss |


Edelweis's research report on Gujrat State Petronet

Gujarat State Petronet (GSPL) delivered subdued Q2FY17 with EBITDA at INR 2,262mn (down 3% QoQ, flat YoY), 3% below estimate. Earnings miss was on account of 5% lower than expected volumes at 24.6mmscmd, while tariff was in line at INR 1.1/scm. Sequential fall in volumes, despite PLNG’s Dahej terminal expansion, could be attributed to the temporary lower off take from refining segment. Management indicated that volumes have recovered in Q3FY17 as spot LNG prices have moderated after recovering in Q2. We expect GSPL’s volumes to benefit from PLNG’s recent expansion (parent GSPC has already booked 2.25mmt) and 2017 commissioning of Mundra LNG terminal. A favourable tariff order is expected shortly, which will be effected from FY18. We estimate 3%/5% volume growth in FY17/18 owing to higher demand from city gas on improving gas economics and higher off-take from incremental PLNG capacity, and expect 12% tariff hike in FY18. Maintain ‘BUY’.

GSPL transmits 20% of its volumes to Reliance Industries’ (RIL) Jamnagar refinery. With gradual commissioning of RIL’s petcoke gasification unit in FY18, we expect the company’s off-take to fall gradually. However, demand from city gas will more than offset the dip. We forecast 9%/17% EPS growth in FY17/18. On steady volumes and higher tariffs, we reiterate ‘BUY/SO’ with a DCF-based target price of INR 184.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Buy, Hold, Sell ? Hear it first on M3
Buy Gujrat State Petronet; target of Rs 184: Edelweiss

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login