Motilal Oswal: Reality Check On LPG Demand Versus Imports; Favours Aegis Logistics

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Liquid petroleum gas has been in ever-increasing use as the need for cooking gas increased amid the lockdown and owing to various government schemes. For this reason, LPG consumption growth came in strong at 12–16% YoY over April - June, while demand for other fuels tanked to 30–60% of normal during this period. This led to a huge jump in LPG imports at approximately 65% of total LPG consumption as refineries trimmed their operating rates due to the lack of demand.The story for the last three months is similar to that for the last three years - in 2016, the government introduced the Pradhan Mantri Ujjwala Yojana (PMUY), which led to a huge spike in LPG consumption. Although, for Aegis Logistics Ltd., investors have been wary of capacity utilization amid increasing competition. In light of the same, we highlight the potential for increase in LPG imports (by approximately 2.7 times to 36.5 million metric ton per annum) despite a rise expected in domestic refining capacity (by approximately 1.5 times to 367mmtpa) by FY31. Moreover, there is huge gap in the per connection consumption of gas by domestic consumers (with expected demand jump of 6.7mmtpa)..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 brokerage 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.

Motilal Oswal: Reality Check On LPG Demand Versus Imports; Favours Aegis Logistics

Motilal Oswal: Reality Check On LPG Demand Versus Imports; Favours Aegis Logistics

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