Prabhudas Lilladher has given Buy recommendation for Gujarat Gas with a target price of Rs. 764 in its research report issued on Feb 08, 2022
Prabhudas Lilladher’s research report on Gujarat Gas
We maintain our FY22-24E earnings, as Q3 results were impacted by sharp jump in spot gas prices (up 85%Q/Q). Industrial volumes sustained at Q2 levels despite sharp price hike of >35%. GGAS reported in-line results with EBIDTA and PAT of Rs2.4bn (-61%Q/Q; 2 yr CAGR -20%) and Rs1.2bn (- 69%Q/Q; 2 yr CAGR -21%) respectively, despite margins contracting to Rs2.3/scm (H1FY22 Rs5.8).
We expect margins to recover from Q3 lows, as spot LNG prices ease and dynamic pricing initiated by company to pass on high spot LNG prices for increased offtake results in lower volumes. Reiterate ‘BUY’ with a DCF based PT of Rs764 (unchanged).
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At 12:13 hrs Gujarat Gas was quoting at Rs 640.75, down Rs 0.70, or 0.11 percent.
It has touched an intraday high of Rs 652.15 and an intraday low of Rs 626.75.
It was trading with volumes of 44,036 shares, compared to its thirty day average of 72,200 shares, a decrease of -39.01 percent.
In the previous trading session, the share closed up 0.60 percent or Rs 3.80 at Rs 641.45.
The share touched its 52-week high Rs 786.65 and 52-week low Rs 425.35 on 04 August, 2021 and 15 February, 2021, respectively.
Currently, it is trading 18.55 percent below its 52-week high and 50.64 percent above its 52-week low.
Market capitalisation stands at Rs 44,108.60 crore.