PSU Stocks: Gujarat Gas Ltd (NSE: GUJGASLTD), the country’s largest city gas distribution company, has released weak results in the December quarter. After this, the confidence of the brokerage was broken and many brokerages were advised to sell it.
After the report came out, there was pressure on the stock and it fell by 6 percent. At present this share is trading at the level of Rs 545 (Gujarat Gas Share Price).
Global brokerage firm has maintained a SELL rating on Gujarat Gas.
On February 15, this share closed at the level of Rs 581. In this situation, the target is about 40% downside.
The brokerage said that the performance was weak and the management’s commentary also lacked substance. There is pressure on margins, the impact of which is visible on profits.
Based on EBITDA per unit of Rs 4.5-5.5, a P/E multiple of 30 looks unstable. In such a situation, selling is advised.
Gujarat Gas Q3 Results
Gujarat Gas is the country’s leading city gas distribution company. It has 817 CNG stations, a 38100 km gas pipeline network, 20.64 lakh PNG domestic connections, and 14900 commercial PNG connections.
Talking about the company’s performance in Q3, the revenue on a standalone basis was Rs 4084 crore which was Rs 3821 crore a year ago, and Rs 3991 crore in the September quarter. EBITDA stood at Rs 410 crore which was Rs 598 crore a year ago and Rs 507 crore in the September quarter.
Profit Before Tax was Rs 296 crore which was Rs 497 crore a year ago and Rs 401 crore in the September quarter. Net profit i.e. PAT was Rs 220 crore which was Rs 371 crore a year ago and Rs 298 crore in the September quarter. Net profit has decreased by more than 41% on an annual basis.
How Was The Performance On A Volume Basis?
Talking about volume, the total gas volume sales was 9.16 MMSCMD which was 7.29 MMSCMD a year ago, and 9.32 MMSCMD in the September quarter. Talking about CNG sales, it was 2.78 MMSCMD which was 2.43 MMSCMD a year ago.
The company sold an all-time high CNG volume in the third quarter. The company is completely debt-free. Return on equity for FY23 stood at 24%.
About Gujarat Gas Ltd Company
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 | ₹ 37,521 Cr. |
| Current Price | ₹ 545 |
| 52-wk High | ₹ 621 |
| 52-wk Low | ₹ 397 |
| Stock P/E | 34.0 |
| Book Value | ₹ 103 |
| Dividend | 1.22 % |
| ROCE | 31.2 % |
| ROE | 24.2 % |
| Face Value | ₹ 2.00 |
| P/B Value | 5.30 |
| OPM | 11.9 % |
| EPS | ₹ 16.0 |
| Debt | ₹ 155 Cr. |
| Debt to Equity | 0.02 |
| Year | 1st Target | 2nd Target |
| 2024 | ₹555 | ₹587 |
| 2025 | ₹598 | ₹610 |
| 2026 | ₹621 | ₹635 |
| 2027 | ₹640 | ₹654 |
| 2028 | ₹660 | ₹676 |
| 2029 | ₹680 | ₹700 |
| 2030 | ₹705 | ₹721 |
| 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 | 4.67% |
| 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% |
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 | ₹ 418Cr |
| 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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