Gujarat State Petronet Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 17388.99 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3790.79 Crore, up 14.65 % from last quarter Total Income of Rs 3306.35 Crore and up 19.34 % from last year same quarter Total Income of Rs 3176.49 Crore. Company reported net profit after tax of Rs 555.43 Crore in latest quarter.
Investment Rationale
GSPL’s transmission volumes witnessed de-growth on account of a fall in demand from the power sector. However, the CGD segment has seen a sharp rebound in demand as industrial PNG demand remained robust and CNG demand recovered to normal in unlock phases. In the long run, the transmission business is expected to report stable volumes in the backdrop of growth in CGD sector and increased LNG capacity in Gujarat. The management intends to increase capacity due to new LNG terminals and support pipelines of its subsidiaries for expansion outside Gujarat. The brokerage values GSPL’s standalone business at ~Rs 166/share. At the CMP, GSPL’s investments in its listed CGD entity Gujarat Gas (54.1% stake) and unlisted Sabarmati Gas, is trading at ~65% discount. It values its investments at ~Rs 194/share at 50% discount.
Promoter/FII Holdings
Promoters held 37.6 per cent stake in the company as of March 31, 2021, while FIIs held 17.2 per cent, DIIs 30 per cent and public and others 15.2 per cent.
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