Hold Gujarat Gas, target price Rs 494: ICICI Securities

economictimes.indiatimes.com:

Gujarat Gas with a target price of Rs 494. The current market price of Gujarat Gas is Rs 475.7.

Gujarat Gas, incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 33004.86 Crore) operating in Gas & Petroleum sector. Gujarat Gas key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.Financials For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 3960.36 Crore, up 6.57 % from last quarter Total Income of Rs 3716.28 Crore and down -15.50 % from last year same quarter Total Income of Rs 4687.06 Crore.

Company has reported net profit after tax of Rs 369.21 Crore in latest quarter. Investment Rationale Keeping in mind the equation between propane and LNG prices over the next 12-18 months, the brokerage believes downside risks to earnings are possible, and hence, now factor in some of these in its FY24/25E EPS. Revised EPS estimates are thus 21.6/13.1% lower vs previous estimates and TP also reduces to Rs494/sh (from Rs585).Promoter/FII Holdings Promoters held 60.89 per cent stake in the company as of 30-Jun-2023, while FIIs owned 4.47 per cent, DIIs 13.28 per cent.