Buy Gujarat State Petronet; target of Rs 392: Prabhudas Lilladher

buy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Gujarat State Petronet

PNGRB, in its tariff order, revised GSPL’s HP Gas Grid tariff to Rs18.1/mmBtu wef from 1st May,2024, a sharp cut of 46.7% against the existing tariff of Rs34/mmBtu. GSPL had proposed the tariff to be revised to Rs50.77/mmBtu. Out of the current volume of 29mmscmd, ~24-25mmscmd would be through HP Gas Grid and we believe this would result in ~30% cut in EPS forecasts for FY25/26E. Going ahead, we estimate transmission volume of 35mmscmd for FY25/26E with a tariff of Rs1,088/mscm.

Outlook

We upgrade our rating from ‘Accumulate’ to ‘Buy’ as no further negatives are expected in the stock, with a TP of Rs392 based on 10x FY26 adj EPS of ~Rs12 and adding the value of its stake in Gujarat Gas and Sabarmati Gas at 25% holding company discount.

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.

Gujarat State Petronet - 22042024 - prabhu