Others | Gas Distribution
Nov 29, 2018
Gujarat State Petronet Ltd
Gujarat State Petronet Limited (GSPL) is a natural gas infrastructure and
Stock Info
transmission company engaged in gas transportation business. The Company is
Gas Distribution
engaged in transmission of natural gas through pipelines on an open access
Market Cap (` cr)
basis from supply points to demand centers. It also generates electricity through
52 Week High / Low
windmills. In the immediate future key positive are softening of LNG prices,
Avg. Daily Volume
recent rupee appreciation, and possibility of ban on use of polluting fuels like
Face Value (`)
furnace oil and pet coke. In the medium to long term, earnings are expected to
BSE Sensex
improve due to upward pipeline tariff revision and higher natural gas
transmission. GSPL's management is optimistic about tariff hike by Petroleum and
Reuters Code
Natural Gas Regulatory Board (PNGRB). Additionally, rising city gas distribution
Bloomberg Code
growth opportunities,
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
boost demand. Government is encouraging the use of LNG/natural gas in the
MF / Banks / Indian Fls
country and it is poised to benefit from it. Increasing volumes backed by increase
in demand coupled with tariff revision from PNGRB will increase profitability of
Indian Public / Others
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
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
[email protected]
Please refer to important disclosures at the end of this report
Gujarat State Petronet Ltd | Gas Distribution
Research Team Tel: 022 - 39357600
E-mail: [email protected]
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Disclosure of Interest Statement
Gujarat State Petronet Ltd
1. Financial interest of research analyst or Angel or his Associate or his relative
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
3. Served as an officer, director or employee of the company covered under Research
4. Broking relationship with company covered under Research
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)