BQ Blue'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 BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We interacted with one of the largest Morbi based unlisted ceramic majors to better understand demand trends, opportunities and its impact on Gujarat Gas Ltd. Morbi accounted for over 90% of India's ceramic production and ~60% of the company's gas demand. While demand remains robust post pandemic, sharp increase in gas prices and continued high freight rates have led Morbi's ceramic industry to operate at ~85% utilisation from over 95% a year back.
Our key observations are-
another round of gas price hike is expected shortly and adverse economics have led to higher usage of propane of 1 million metric standard cubic metre per day,
we expect Gujarat Gas' margins to bottom in Q3 at Rs 2.5/standar cubie metre and improve in Q4, due to pricing intervention and
any resolution in Ukraine crisis and forward movement in certification of the Nord Stream II pipeline will ease spot liquefied natural gas prices and support margins.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
