Gujarat Gas Q4 Results Review: Volume Growth At IPNG Remains A Concern; Systematix Maintains 'Hold'

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Systematix Report

Gujarat Gas Ltd. through its 828 CNG stations serve ~4 lakh vehicles/day (2 lakh vehicles got added in FY25), to reach total count of 15.4 lakh vehicles. With more focus now on increasing asset-light full dealer owned-dealer operated scheme, the company targets to add 70+ stations, while its IPNG business currently remains flattish the management informed ~9 big units to commence soon in Morbi, hopeful to help in volume growth.

We still continue to forecast spreads of Rs 5.4/scm for FY26/27 until volatility in pricing stabilizes. The stock trades at 24.6x/23.2x FY26E/27E PER.

We revise down our SoTP based target price to Rs 500 from earlier Rs 513 and maintain Hold rating on the stock.

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