Hold Gujarat State Petronet target of Rs 380 Prabhudas Lilladher

hold

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Gujarat State Petronet

Gujarat State Petronet (GSPL) reported an EBITDA of Rs1.9bn (down 35.9% QoQ, PLe: Rs2.9bn, BBGe: Rs2.3bn). PAT came in at Rs3.9bn (up 83.6%QoQ, PLe: Rs3bn, BBGe: Rs2.8bn). Growth in PAT was on account of ~9x rise in other income. Total volume declined 1.7% QoQ and 18.4% YoY primarily due to decline in CGD, power and fertilizer volumes. Going ahead, we build in 7% CAGR volume growth over FY25-27E with an implied tariff of Rs1,129/mscm for FY26/27E. The stock is currently trading at 23.9/22.1x FY25/26 EPS.

Outlook

Maintain ‘HOLD’ rating with a TP of Rs380. Investments in Gujarat Gas (54.2% stake) and Sabarmati Gas (27.5% stake) at a 25% holding discount provide a valuation of Rs271, and valuing the core business at 8x avg FY26-27E adj EPS at Rs109, we arrive at a TP of Rs 380.

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 - 08112024 - prabhu