Gujarat Gas - Risk-Reward Turns Favorable: Prabhudas Lilladher

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.Gujarat Gas Ltd.'s stock price fell 20%, as soaring spot liquefied natural gas price of over $20/ metric million British thermal unit and lower container availability hit Morbi volumes which accounts for ~60% of company’s volumes. However, we believe recent correction offers an attractive entry point given: likely start of new gas (Nord Stream two) pipeline supplies from Russia by early CY22 to help ease spot LNG prices, Gujarat Gas has entered into oil linked contracts for cutting reliance on spot volumes to 24% in FY22, recent price hikes in compressed natural gas and piped natural gas of 4%/15% to shield margins and aggressive expansion of CNG station network to increase CNG share to 19.5% in FY24E (15.7% in FY20). .Click on the attachment to read the full report:.DISCLAIMERThis 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.

Gujarat Gas - Risk-Reward Turns Favorable: Prabhudas Lilladher

Gujarat Gas - Risk-Reward Turns Favorable: Prabhudas Lilladher

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