Buy Gujarat State Petronet; target of Rs 360: ICICI Direct

ICICI Direct's research report on Gujarat State Petronet

Gujarat State Petronet’s (GSPL) operating revenue for Q4FY21 fell 21.9% YoY to Rs 485 crore on account of decline in transmission volume. Gas transmission volumes dipped 8% YoY to 33.8 mmscmd mainly owing to reduced offtake from power and refineries sector. EBITDA came in at Rs 344.2 crore, down 3.2% YoY as decline was limited due to lower other expenses. Subsequently, reported PAT was at Rs 206.3 crore, down 8.6% YoY.

Outlook

Hence, we maintain BUY and arrive at a target price of Rs 360/share (earlier Rs 285).