Webinar :Register now for webinar on 'Trade BankNifty in just 15 minutes a day' - By Asmita Patel
Last Updated : Nov 17, 2020 05:01 PM IST | Source: Moneycontrol.com

Buy Gujarat Gas Petronet; target of Rs 231: Dolat Capital Market

Dolat Capital Market is bullish on Gujarat Gas Petronet has recommended buy rating on the stock with a target price of Rs 231 in its research report dated November 11, 2020.

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

Dolat Capital Market's research report on Gujarat Gas Petronet


Gujarat State Petronet (GSPL) transmission volumes at 39.75 mmscmd (growth of 1.5% YoY and of 19.5% sequentially) above our estimates of 35.3 mmscmd. Tariffs were at ` 1.55/scm (de-growth of 10% YoY and growth of 3.3% QoQ). Revenue in line with our estimates. Revival of volumes were seen across segments hence the offtake of gas. 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 with industrial units starting up and sales reaching 100% Pre Covid levels, volumes from CGD business have revived. We expect GSPL’s transmission volumes to increase from H2FY21 from Gujarat Gas volumes, other CGD projects and power sector. Volumes which was subdued from CGD segment in Q1FY21 because of lower industrial activity due lockdown is gaining pace.



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 recommend Buy with a target price of Rs 231.


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 Nov 17, 2020 05:01 pm
Sections