Stock to Buy: A Significant Upside of 31.6% Seen From This Mid Cap Oil & Gas Stock

Emkay Global has recommended investors to buy stock of Gujarat State Petronet. The brokerage feels that the share price will give good gains of 31.6% if invested now. Gujarat State Petronet is only state government owned, oil and gas company under the ownership of Department of Energy and Petrochemicals, Government of Gujarat. Its free float market capitalisation is Rs 7,913.06 crore. The leading broker has suggested a buy view, from looking at the company's performance. Check the details here.

Gujarat state Petronet Q3FY23 numbers were down

According to the Emkay Global research report, Gujarat state Petronet Q3FY23 numbers were below their estimates. "GSPL's Q3FY23 SA revenue, EBITDA, APAT stood at Rs 4 billion, Rs 2.7 billion and Rs1.7 billion respectively, was down by 15%, 20%, 20% on yearly basis and down by 7%, 19% and 46% quarterly basis. EBITDA was 15% below our estimate, on 6% revenue-miss (due to low vol.) and higher Other Expenses. Other Income fell QoQ."

Buy share of Gujarat State Petronet, with a target price of Rs 350 per share

Drop in gas transmissions has impacted the Q3 numbers of Gujarat State Petronet , factoring that in analyst of the brokerage has cut the estimates. "Gas transmission volumes fell 9% or by 2.2mmscmd QoQ to 22.3mmscmd (down 30% YoY, a 9% miss), with refinery/petchem down 1.9 mmscmd QoQ and other sectors down 0.6mmsc md, partly offset by slight recovery in power, while CGD marginally dipped QoQ. We trim FY23E EPS by 5%, to build-in lower volumes while raising FY24/25E by 5/3%, as we rationalize the tariff cut from FY24, though it is partly offset by lower volume. We roll over to Mar-24 with an 8% hike in TP to Rs350/sh. We reiterate BUY, as tariff review nears."

Stock performance of Gujarat State Petronet

The stock price of Gujarat State Petronet has grown by 11.19% in 6 months, 12.83% in 3 months and 13.72% in 3 years but, in one year it declined by 4.27%, The stock price has jumped up by 30.96% from 52-week low. The current market price of the stock is 274.30 per share, its 52-week high and low is at Rs 299.20 per share and Rs 209.45 per share respectively.

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.