BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Petroleum and Natural Gas Regulatory Board, in its tariff order dated March 22, 2023, has approved a levelized tariff of Rs 58.6/metric million British thermal unit for GAIL India Ltd.’s integrated natural gas pipeline, effective April 01, 2023. To give a perspective, GAIL had proposed an integrated tariff of Rs 68/mmBtu versus ~Rs 43/mmBtu realized during nine months-FY23.
As a result of the tariff hike, we increase our Ebitda estimate (excluding other income) for FY24 to Rs 134 billion from Rs 116 billion previously. Similarly, we raise our FY24 earnings per share estimate by 16% to Rs 14.4 from Rs 12.4 previously.
Liquefied natural gas prices have plummeted to ~$12/mmBtu from the peak of $54/mmBtu. This correction, combined with the recent ramp-up of PATA, should improve the petrochem segment’s performance.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
GAIL Shares Downgraded To 'Add' By ICICI Securities Citing Limited Near-Term Triggers — Check New Target Price
PNGRB Expert Panel For Sweeping Reform To Unlock Free Gas Market
'Hold' GAIL Shares Maintains Systematix Despite Upward EPS Revision — Check Revised Target Price
GAIL Shares Plunge Over 6% On Lower Than Expected PNGRB Transmission Tariff Revision
POPULAR