Buy Guj State Petro; target of Rs 151: KRChoksey

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26 Aug, 2025 12:21

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KRChoksey's research report on Guj State PetroGujarat State Petronet Ltd. reported revenue of INR. 2481 mn down 1.9% QoQ and up 2.0% Y-o-Y due to lower transmission volume. EBITDA was also down 6.7% QoQ at INR 2092 mn due to higher operation and maintenance expenses. Profit stood at INR. 1235 mn (boosted by higher other income) up 13.8% on QoQ and 39.1% on Y-o-Y basis. Transmission volumes stood at 23.1 mmscmd which was down 5.1% QoQ and up 0.7% YoY. Implied tariff was higher 0.9% on a QoQ and down 6.2% on a YoY basis to INR 1,080/mscm.We remain positive on the stock considering the following trigger points. 1- ONGC to enhance domestic production by 10‐15mmscmd over 1‐3 years. 2- CBM production is poised to grow by 6‐8mmscmd over 2‐3 years. 3- Commissioning of Mundra terminal by FY18. We model transmission tariff at INR 1215, 1230 and 1267 mscm and volumes at 25.8, 27.5 and 29.3 mmscmd for FY16/17/18. We assign ‘ACCUMULATE’ rating on the stock with the target price of INR 151/share based on the mix of EV/EBITDA, P/E and DCF methodology. Currently Stock trades at 14.3x FY17E EPS of INR 9.5.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.

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