Buy GSPL; target of Rs 63: Firstcall Research

Firstcall Research report on Gujarat State Petronet (GSPL)

At the current market price of Rs.55.90, GSPL P/E ratio is at 5.44 x FY14E and 5.08 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.10.28 and Rs.11.00 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 6% and 6% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 2.73 x for FY14E and 2.31 x for FY15E. Price to Book Value of the stock is expected to be at 0.91 x and 0.77 x respectively for FY14E and FY15E. We recommend 'BUY' in this particular scrip with a target price of Rs 63 for Medium to Long term investment. 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.

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