Gujarat Gas share price was down five percent in afternoon on August 4, a day after the company rolled out its June quarter earnings, missing profit estimates.
CLSA has maintained a sell rating on the stock and has cut target to Rs 390 from Rs 450, a downside of 12 percent. The brokerage firm is of the view that eight percent miss on net profit was due to lower margin and volume while two percent volume miss was led by industrial and residential business. CLSA has also cut FY23/24 earnings per share (EPS) estimates by 20/12 percent.
Jefferies has a buy rating but has cut target to Rs 525 from Rs 700 per share. It is of the view that higher core profit margin led to a nine percent core profit beat while volumes missed estimates.
The company reported net profit at Rs 381.90 crore in the June quarter, down 19.89 percent from a year ago, missing estimates. Core profit came in at Rs 625.61 crore, down 15.93 percent.
The firm reported net sales at Rs 5,303.23 crore, up 72.97 percent.