BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Our optimism on Gujarat Gas Ltd. is based on our increased margin and volume estimates for FY23E/FY24E/FY25E, underpinned by potential tailwinds from:
signs of spot liquefied natural gas prices correcting to ~$30/metric million British thermal unit in FY24E and less than $15/mmbtu by FY25E and
the likely $2.1/mmbtu cut in APM gas price by Q4 FY23E based on the cap of $6.5/mmbtu suggested recently by Dr. Kirit Parikh in his gas pricing report.
The risk of an interim pullback in LNG prices is a cause for concern, but this is priced in with the stock correcting by 20% year-to-date.
Further, in H1 FY23, Gujarat Gas has shown tactical adeptness in cutting sales to the sensitive tiles sector in Morbi and improving margins - higher growth there entails pain of sourcing expensive spot LNG, which poses a risk to its margins.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2024-09-01/amtc2er7/AeroIndia Nandi-21 (Source SIDM official website).jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Society Of Indian Defence Manufacturers - Sustaining The Defence Ecosystem: Nirmal Bang
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-05/76e25c23-a506-4f50-aeae-5c7005b8f6b8/Dr__Reddys_Laboratories_R_D_fcility__image_Company_website__png_3png.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Dr. Reddy's - U.S., Europe Drive Growth: Nirmal Bang
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-02/56228658-6108-430a-ba3d-13c966e38542/Suprajit_Engineering_Ltd___Source_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Suprajit - New Products, Acquisition Synergies To Drive Next Leg Of Growth; Nirmal Bang Initiates With A Buy
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-02/c7c449b2-f59c-4ae5-ba1f-ead81239e8b8/EIH_website.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
EIH Q1 Results Review - Heat-Wave Impacted Leisure Demand In The Quarter: Nirmal Bang
![timelogo](/images/amp-time.png)