Gujarat Gas' Merger To Unlock Value For Gujarat State Petronet, Gujarat Gas: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Gujarat Gas Ltd. has announced a scheme of amalgamation and arrangement, under which Gujarat State Petroleum Corp. Ltd., Gujarat State Petronet Ltd. and GSPC Energy Ltd. will merge with Gujarat Gas. This will be followed by the merged entity de-merging the transmission business into a new entity, GSPL Transmission Ltd. Gujrat Gas management expects to complete the transactions by August 2025. Based on the proposed share swap, we see ~5% upside for Gujarat State Petronet. For Gujarat Gas shareholders, we see the following key implications after the merger: We estimate a combined value of the business at Rs 633/share, implying 4.7% upside on CMP.EPS is estimated to be Rs 28.7, up 39% vs. our FY25 EPS estimate. .The company may not pay taxes for the next four years due to Rs 72 billion of accumulated tax losses at GSPC (based on FY24 PBT). We maintain our Buy rating on Gujarat Gas with a target price of Rs 715. While Q2 FY25 volume momentum is expected to be weak QoQ amid high spot LNG prices and a one-month shutdown in the Morbi cluster, we believe volumes should pick up in H2 FY25-FY26 amid improved competitiveness versus propane. We keep our estimates unchanged as the scheme is expected to be completed in Aug-25..Click on the attachment to read the full report:.Gujarat Gas Merger To Be Earning Positive But Here's The Catch.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gujarat Gas' Merger To Unlock Value For Gujarat State Petronet, Gujarat Gas: Motilal Oswal

The brokerage reiterates its Buy rating on the stock with a target price of Rs 715, valuing it at 30 times FY26E earnings per share.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Gujarat Gas' Merger To Unlock Value For Gujarat State Petronet, Gujarat Gas: Motilal Oswal

The brokerage reiterates its Buy rating on the stock with a target price of Rs 715, valuing it at 30 times FY26E earnings per share.

Choose a plan

Follow Us

DOWNLOAD THE APP