Gujarat State Petronet Q1 Results Review - Compelling Valuation With Robust Long-Term Prospects: Dolat Capital

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..Dolat Capital Report.Gujarat State Petronet Ltd.'s revenue Rs 4.4 billion (-8% YoY), 3% below our estimates. Revenue growth impacted due to 8% YoY fall in blended tariff.The company posted 17% QoQ jump in volume on the back of improved consumption by power, city gas distribution, and other small industries on the soft liquefied natural gas prices. Power sector gas consumption jumped 131% YoY and 223% QoQ on account of 36% fall in spot LNG prices.Ebitda Rs 3.4 billion (-7% YoY, +14% QoQ), 10% above estimates. Ebitda growth backed by 44% decline in gas transportation costs. Profit after tax Rs 2.3 billion (-3% YoY, +2% QoQ), 1% above our estimates. For Gujarat State Petronet, the upcoming tariff review is crucial, as it would give medium‐term earnings visibility vs the ongoing uncertainty that has created an overhang on the stock despite attractive valuations. While valuing Gujarat State Petronet, we have assigned ~50% holding company discount, even adjusted to which the stock is trading at just seven times of FY25E price/earning. Hence, we maintain 'Accumulate' with a revised target price of Rs 325 (versus earlier Rs 335)..Click on the attachment to read the full report:.Mahanagar Gas Q1 Results Review - Superior Margin Performance Lifted Result; Upgrading To 'Buy': Systematix.DISCLAIMERThis 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.

Gujarat State Petronet Q1 Results Review - Compelling Valuation With Robust Long-Term Prospects: Dolat Capital

Softer LNG prices and upcoming LNG terminal, volume growth driver.

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Gujarat State Petronet Q1 Results Review - Compelling Valuation With Robust Long-Term Prospects: Dolat Capital

Softer LNG prices and upcoming LNG terminal, volume growth driver.

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