Others | Gas Distribution
Nov 29, 2018
Gujarat State Petronet Ltd
BUY
CMP
`188
Gujarat State Petronet Limited (GSPL) is a natural gas infrastructure and
Stock Info
transmission company engaged in gas transportation business. The Company is
Sector
Gas Distribution
engaged in transmission of natural gas through pipelines on an open access
Market Cap (` cr)
10,628
basis from supply points to demand centers. It also generates electricity through
52 Week High / Low
210/149
windmills. In the immediate future key positive are softening of LNG prices,
Avg. Daily Volume
39984.04
recent rupee appreciation, and possibility of ban on use of polluting fuels like
Face Value (`)
10
furnace oil and pet coke. In the medium to long term, earnings are expected to
BSE Sensex
36,170
improve due to upward pipeline tariff revision and higher natural gas
Nifty
10,859
transmission. GSPL's management is optimistic about tariff hike by Petroleum and
Reuters Code
GSPT.BO
Natural Gas Regulatory Board (PNGRB). Additionally, rising city gas distribution
Bloomberg Code
GUJS IN
growth opportunities,
potential
shift
to
natural
gas due to
environmental/pollution norms (industrial / CNG) and volumes from Mundra
LNG terminal adds support to long term volumes. Going forward, the company
is expected to report higher volumes as incremental demand comes from existing
Shareholding Pattern (%)
players will start to show in the numbers. Also fall in import duty of LNG will
Promoters
37.7
boost demand. Government is encouraging the use of LNG/natural gas in the
MF / Banks / Indian Fls
31.4
country and it is poised to benefit from it. Increasing volumes backed by increase
FII / NRIs / OCBs
17.0
in demand coupled with tariff revision from PNGRB will increase profitability of
Indian Public / Others
13.9
the company. The company has reported a healthy return on equity of 14% in
FY18 as compared to ~12 during FY14-17. Hence Buy.
Abs. (%)
3m 1yr
3yr
Sensex
(6.6)
7.6
38.4
GSPL
2.5
(8.5)
41.1
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
[email protected]
Please refer to important disclosures at the end of this report
1
Gujarat State Petronet Ltd | Gas Distribution
Research Team Tel: 022 - 39357600
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Limited is a registered entity
with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164. Angel
or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities
Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public offering of securities of
the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Disclosure of Interest Statement
Gujarat State Petronet Ltd
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
2