Buy Gujarat State Petronet; target of Rs 360: Emkay Global Financial

Emkay Global Financial is bullish on Gujarat State Petronet has recommended buy rating on the stock with a target price of Rs 360 in its research report dated May 12, 2023.

Broker Research

May 13, 2023 / 23:12 IST

buy

26 Aug, 2025 12:21

Volume

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Emkay Global Financial's research report on Gujarat State Petronet

GSPL’s Q4FY23 EBITDA came in 9% above our estimates, driven by increased volumes, while a sizeable 27% net income beat was on account of higher other income. GSPL’s capex grew with a Rs1.5/2.0bn cash outlay in H2/FY23 (vs. ~Rs0.8bn p.a. in FY21/22), which could be a thumbs up to PNGRB’s recent tariff reforms. Tariff review of Gujarat grid is expected soon. GSPL reported Q4FY23 SA EBITDA/APAT of Rs2.9bn/Rs2.2bn, down 4%/up 11% YoY and up 9%/31% QoQ. Gas transmission volumes rose 12% QoQ to 25.1mmscmd (down 14% YoY, but a 9% beat), with CGD/refinery-petchem/power sector offtake up 1.5/0.7/0.5mmscmd QoQ.

Outlook

We raise our FY24/25E EPS by 8% each to build-in higher volumes as well as other income, based on the current run-rate. We maintain BUY with a revised Mar-24 TP of Rs360/sh, with tariff review being a key monitorable in the near term.

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