Prabhudas Lilladher's research report on Gujarat Gas
We lower our FY23/24E earnings by 5.2%/3.4% as we trim our volume estimates. GGAS reported strong Q4 results supported by lower spot LNG purchase. Industrial volumes were lower at 22% QoQ, as dynamic pricing to pass on high gas price hit volumes. EBIDTA and PAT of Rs6.9bn (+194%Q/Q) and Rs4.6bn (+271%Q/Q) was better than expected, led by higher margins of Rs7.8/scm (Q3 Rs2.3).
We expect margins and volumes to remain healthy, as spot LNG prices ease. Reiterate ‘BUY’ with a DCF based PT of Rs650 (Rs675).
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