PSU Stock to Buy: Amidst the ongoing bull run in the stock market, a good amount of money is being made in government shares. Based on corporate updates and market sentiments, action in selected stocks may continue further.
The brokerage firm has selected Gujarat Gas Ltd (NSE: GUJGASLTD), a government company in the oil and gas sector, for long-term purchase.
He says that the recent reduction in gas prices will help the company in increasing its market share. Over the last six months, the share has risen by more than 25 percent.
Gujarat Gas: Will Touch ₹676 Level
Brokerage firm has advised buying Gujarat Gas. Additionally, the target price for each share was set at ₹672. In the special session of March 2, 2024, the share closed at the level of Rs 577.
In this way, this stock can rise further by 17-18 percent from the current price. The stock has increased over 25 percent in the last six months.
While the return over one year for the stock was more than 12 percent. At the same time, Morgan Stanley is also bullish on Gujarat Gas.
The brokerage of the world has awarded an “overweight” rating for Gujarat Gas. The price of the share that is a target is set at 579 rupees.
Gujarat Gas: What Is The Opinion Of The Brokerage?
A brokerage says that a reduction in LNG cost will increase competition. Gujarat Gas has reduced I-PNG prices by INR4/scm. The company has made this cut due to the fall in spot LNG prices (-47% YoY; -13% MoM).
This is expected to increase incremental volumes. The brokerage believes that due to the company’s expansion in new areas and revival in I-PNG, Gujarat Gas’ volume growth can remain in double digits.
Another Brokerage says that the price cut will increase the company’s market share. The prices for spot LNG have fallen less than 8.5 MMBTU, and are forecast to drop further.
The fall in spot LNG prices will make the gas more attractive than alternatives like propane. The company’s focus is on gaining market share from alternative fuels.
About Gujarat Gas Ltd
Gujarat Gas Limited, a company based in India is involved in the natural gas industry in India.
Natural gas distribution is the business of distributing gas from the sources of supply, to the centers of demand and final customers.
The Company’s main business is city gas distribution. This includes the purchase, sale, supply, transportation, trading, and distribution of natural gas and compressed natural gases (CNG), as well as liquefied gas and petroleum gas.
Around 18.90 lakh households in its operating areas receive natural gas piping for domestic use.
The company has 27 city-gas distribution licenses in 43 districts across six states, including Gujarat, Maharashtra, and Rajasthan. It also includes Haryana, Punjab, and Madhya Pradesh, as well as the Union Territory Dadra & Nagar Haveli.
Fundamental Analysis of Gujarat Gas Ltd
| Market Cap | ₹ 40,598 Cr. |
| Current Price | ₹ 590 |
| 52-wk High | ₹ 621 |
| 52-wk Low | ₹ 397 |
| Stock P/E | 36.7 |
| Book Value | ₹ 103 |
| Dividend | 1.13 % |
| ROCE | 31.2 % |
| ROE | 24.2 % |
| Face Value | ₹ 2.00 |
| P/B Value | 5.65 |
| OPM | 11.9 % |
| EPS | ₹ 16.0 |
| Debt | ₹ 155 Cr. |
| Debt to Equity | 0.02 |
Gujarat Gas Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 555 | ₹ 621 |
| 2025 | ₹ 634 | ₹ 687 |
| 2026 | ₹ 721 | ₹ 735 |
| 2027 | ₹ 740 | ₹ 754 |
| 2028 | ₹ 860 | ₹ 876 |
| 2029 | ₹ 980 | ₹ 1100 |
| 2030 | ₹ 1232 | ₹ 1343 |
Gujarat Gas Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 60.89% |
| Mar 2023 | 60.89% |
| June 2023 | 60.89% |
| Sept 2023 | 60.89% |
| Dec 2023 | 60.89% |
| FII Holding | |
| Dec 2022 | 5.17% |
| Mar 2023 | 4.47% |
| June 2023 | 4.47% |
| Sept 2023 | 3.80% |
| Dec 2023 | 3.34% |
| DII Holding | |
| Dec 2022 | 12.55% |
| Mar 2023 | 13.28% |
| June 2023 | 13.28% |
| Sept 2023 | 13.09% |
| Dec 2023 | 13.98% |
| Govt. Holding | |
| Dec 2022 | 7.01% |
| Mar 2023 | 7.01% |
| June 2023 | 7.01% |
| Sept 2023 | 7.01% |
| Dec 2023 | 7.01% |
| Public Holding | |
| Dec 2022 | 14.38% |
| Mar 2023 | 14.15% |
| June 2023 | 14.34% |
| Sept 2023 | 15.20% |
| Dec 2023 | 14.78% |
Gujarat Gas Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 7,754 Cr |
| 2020 | ₹ 10,300 Cr |
| 2021 | ₹ 9,866 Cr |
| 2022 | ₹ 16,456 Cr |
| 2023 | ₹ 15,485 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 418 Cr |
| 2020 | ₹ 1,199 Cr |
| 2021 | ₹ 1,270 Cr |
| 2022 | ₹ 1,287 Cr |
| 2023 | ₹ 1,104 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.95 |
| 2020 | 0.55 |
| 2021 | 0.17 |
| 2022 | 0.09 |
| 2023 | 0 |
Last 10 Years’ Profit Growth:
| 10 Years: | |
| 5 Years: | 39% |
| 3 Years: | 8% |
| Current Year: | -32% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | |
| 5 Years: | 29% |
| 3 Years: | 27% |
| Last Year: | 24% |
Sales Growth Over 10 Years:
| 10 Years: | |
| 5 Years: | 22% |
| 3 Years: | 18% |
| Current Year: | -12% |
Conclusion
This article is a complete guide about Gujarat Gas Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We provide timely updates about the stock market and financial products to help you make better investment choices. Do your research before any investment.
