Gujarat Gas Ltd., incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 41764.63 Crore) operating in Gas & Petroleum sector.
Gujarat Gas Ltd. key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 3705.11 Crore, up 20.01 % from last quarter Total Income of Rs 3087.21 Crore and up 43.57 % from last year same quarter Total Income of Rs 2580.70 Crore. Company reported net profit after tax of Rs 249.07 Crore in latest quarter.
Investment Rationale
With an increasing focus on gas over other alternate fuels and relative price advantage of gas over alternate fuels, the brokerage estimates 16% volume CAGR over FY21-FY24E. We expect GUJGA’s earnings to clock 23% CAGR over FY21-FY24E. Its RoCE is expected to expand by 254bps to 30.8% over FY21-FY24E. GUJGA has the potential to become the first US$10bn CGD company in India. The brokerage maintains a BUY rating on GUJGA, with DCF-based Target Price of Rs967 (from Rs379 earlier). This implies the stock is valued at 17.1x FY24E EPS and 18x FY24E EBITDA.
Promoter/FII Holdings
Promoters held 60.89 per cent stake in the company as of 30-Sep-2021, while FIIs owned 7.86 per cent, DIIs 8.07 per cent.
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