Axis securities's research report on Guj State PetroGSPL’s Q3FY16PAT at Rs 1.2bn was higher than our estimate (Rs 1.1bn) due to higher other income at Rs 0.3 bn (Rs 0.1 bn expected)on Rs 180 mn dividend income from Gujarat Gas (26% stake). Gas volume at 25.1 mmscmd was marginally higher QoQ due to higher supplies to power plants. Transportation tariffs at Rs 1.05/mscm was flat QoQ. Higher tariffs, volumes to drive earnings:We expect GSPL’s blended tariffs to increase by ~10% in FY17 as PNGRB^would amend tariff calculation methodology addressing industry concerns. Gas volumes would also pick up, given higher demand from power sector and start-up of Mundra LNG terminal (in FY18). Higher tariffs and volumes todrive 21% EPS CAGR over FY16-18E. Maintain BUY with TP of Rs 160. 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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