Moneycontrol PRO
you are here: HomeNewsBusiness

Buy Gujarat State Petronet; target of Rs 300: Sharekhan

Sharekhan is bullish on Gujarat State Petronet has recommended buy rating on the stock with a target price of Rs 300 in its research report dated February 11, 2021.

February 16, 2021 / 05:24 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on Gujarat State Petronet

Q3FY2021 operating profit/PAT at Rs. 398 crore/Rs. 248 crore exceeded estimates by 6%/9% led by 3.6% beat in gas transmission volume and lower-than-expected operating cost and depreciation. Volumes would be temporarily affected in Q4FY2021 (to decline 14% q-o-q to 33-34 mmscmd) due to lower offtake from refineries. Long-term outlook is intact led by regulatory push and unified tariffs. Spot LNG price has corrected to $6.5/mmBtu and would aid volume growth. Core pipeline business is effectively available free to investors as market value of GSPL’s investment in Gujarat Gas (after assuming 20% holding company discount) is close to GSPL’s current market capitalisation of Rs. 13,143 crore). Hence, we see deep value for investors in GSPL.


We maintain our Buy rating on GSPL with an unchanged PT of Rs. 300 given strong earnings growth outlook, revival of capex plan (Rs. 500 crore for FY22) and management focus to become debt free.

For all recommendations report, click here


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

Broker Research
first published: Feb 16, 2021 05:24 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark