Prabhudas Lilladher's research report on Gujarat Gas
We hosted a call with one of the largest ceramic tile player in Morbi to better understand demand dynamics in domestic and export markets. Demand traction remains robust led by 1) revival in domestic housing market supported by govt. initiated liquidity measures and 2) strong export demand given cost competitiveness along with opening of new markets in US and Brazil. Improved ceramic market demand augurs well for GGAS as Morbi accounts for over 60% of total sales volumes. Also, ban on competing dirty fuel has led to restricted competition with propane in summer months, thereby improving GGAS’s margin visibility.
Outlook
Rising pollution in industrial zones is likely to drive gas usage. Reiterate BUY with a PT of Rs403.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
