Angel Broking neutral on Gujarat State Petronet

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26 Aug, 2025 12:21

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Angel Broking has maintained neutral rating on Gujarat State Petronet, in its February 08, 2013 research report.
 
“Gujarat State Petronet (GSPL)’s 3QFY2013 volumes continued to decline led by declining production from KG D6. The top-line and bottom-line decreased by 2.8% and 5.7% yoy, respectively. We maintain our Neutral recommendation on the stock.”
 
“GSPL’s total operating revenues decreased by 2.8% yoy to Rs266cr, mainly due to a decline in transmission volumes, although the impact was partially offset by higher tariffs. Transmission volumes for 3QFY2013 decreased by 16.0% yoy to 27.56mmscmd whereas transmission tariffs increased by 15.5% yoy to Rs1/scm. The EBIDTA also decreased by 4.9% yoy to Rs239cr, mainly due to higher operating expenses. Depreciation expenses rose by 3.8% yoy to Rs48cr. The tax rate declined marginally to 33.0% in 3QFY2013 compared to 33.9% in 3QFY2012. The PAT decreased by 5.7% yoy to Rs119cr.”
 
“We believe GSPL is a leveraged play on increasing gas demand in Gujarat (the country’s hydrocarbon capital) from gas-based power plants and rising spot prices. However, we remain concerned due to declining gas production from the KG-D6 block. Hence, we expect a muted volume growth for GSPL over FY2013-14. Further, we expect average tariff to decline during FY2013-14, compared to FY2012. Hence, although valuations are undemanding for a utility company at 1.2x FY2014E P/BV, we maintain our Neutral rating on the stock due to anticipated decline in earnings over FY2012-14,” says Angel Broking research report.

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