Buy Gujarat State Petronet; target of Rs 200: ICICIdirect

ICICIdirect's research report on Gujarat State Petronet

Gujarat State Petronet’s (GSPL) board has approved the acquisition of up to 28.4% stake in Gujarat Gas from GSPC. The transaction will involve acquisition of 3.9 crore shares and be a related party transaction between two government companies, thus, requiring no regulatory approval. Currently, GSPL has a 25.8% stake in Gujarat Gas.

Outlook

We value GSPL’s investments in CGD entities like Gujarat Gas (54.1% stake) and Sabarmati Gas (27.5%) at | 104 per share and standalone business at | 96 per share to arrive at a price target of | 200. We have a BUY recommendation on GSPL. For all recommendations report, click here

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