Gujarat Gas Share Price Jumps 10% on Heavy Volumes, Extend 3-Day Rally

Gujarat Gas share price (NSE: GUJGASLTD) rallied sharply on March 12, rising as much as 10% to ₹432 during intraday trade on the National Stock Exchange of India.

The stock has been gaining for 3 consecutive sessions, climbing around 16% during this period. Despite the rally in the stock, the broader Nifty 50 index was trading about 0.88% lower.

At around 10:05 AM, the stock was still up about 6% at ₹415.50, showing strong investor interest.

Largest City Gas Distributor in India

Gujarat Gas Ltd is currently the largest city gas distribution (CGD) company in India.

The company operates across 27 geographical areas covering six states and one union territory. It has built a pipeline network of more than 44,550 kilometres.

Through this network, the company supplies natural gas to:

• Around 2.38 million households
• Nearly 4,454 industrial customers
• About 15,900 commercial customers

It also runs 833 CNG stations, which serve nearly 4 lakh vehicles every day.

Growth Supported by Clean Energy Shift

The company expects continued growth in its domestic and commercial gas segments as newly developed areas gradually mature.

With increasing demand for cleaner energy sources, city gas distribution companies like Gujarat Gas Ltd are expected to benefit from higher adoption of CNG vehicles and natural gas usage.

Strong Credit Rating

Rating agency CRISIL Ratings has reaffirmed the company’s “CRISIL AAA/Stable” rating for its long-term bank facilities.

This strong rating reflects the company’s stable business model, strong financial position, and leadership in the city gas distribution sector.

The rating also considers the ongoing merger of Gujarat State Petroleum Corporation, Gujarat State Petronet Ltd, and GSPC Energy Ltd with Gujarat Gas. Once completed, the merged entity will further strengthen its presence in the natural gas trading business.

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Conclusion

The strong rally in Gujarat Gas Ltd shares highlights growing investor interest in city gas companies, especially as India moves toward cleaner energy sources. 

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