172@29@17@107!~!172@29@0@53!~!|news|business|stocks|accumulate-gujarat-state-petronet-target-of-rs-235-dolat-capital-5669611.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Aug 09, 2020 09:16 PM IST | Source: Moneycontrol.com

Accumulate Gujarat State Petronet; target of Rs 235: Dolat Capital

Dolat Capital recommended accumulate rating on Gujarat State Petronet with a target price of Rs 235 in its research report dated August 06, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Gujarat State Petronet


Gujarat State Petronet (GSPL) transmission volumes at 33.25 mmscmd (de-growth of 13% YoY and of 9.6% sequentially) above our estimates of 22 mmscmd. Tariffs were at Rs 1.5/scm (growth of 2% YoY and de-growth of 14.3% QoQ). Revenue was ahead of our estimates. Refinery and Power sector considered as essential commodity, largest offtake were from those segments. Due to NGT’s 6Mar’19 order to ban the use of coal gasifiers in Morbi region, spurted Gujarat Gas volumes from its industrial belt of Morbi in the previous quarters, however due to shut down of non-essential industrial units, volumes from CGD business was low. We expect GSPL’s transmission volumes to increase from H2FY21 from Gujarat Gas volumes, other CGD projects and power sector. Volumes can be subdued from CGD segment in H1FY21 because of lower industrial activity due lockdown and slower revival of economy.



Outlook


With both volume and tariff outlook looking strong, we expect robust revenue growth along with profitability to reach normalized levels from H2FY21. Investments in Gujarat Gas and Sabarmati Gas will reap benefits. Investments in consortium for transnational pipelines is a concern in medium term. Considering these factors, we maintain Accumulate with a target price of Rs 235.


For all recommendations report, 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.

First Published on Aug 9, 2020 09:16 pm
Sections