Gujarat Gas Q2 Results Review - Slowdown At Morbi Dragged Volume: Dolat Capital

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..Dolat Capital Report.Gujarat Gas Ltd.’s Q2 FY25 Ebitda/ profit after tax came +27%/+31% above our estimates, driven by super-normal gross and Ebitda margins. Volume loss at Morbi led to drop in spot LNG requirement. CNG and PNG-price hike boosted margins. Key Highlights are-A significant decline in Morbi - PNG (I) volume to 2.9 million metric standard cubic metre per day (45% YoY, -25% QoQ), although there was a partial recovery in Q3 TD. Management’s guidance for total volume growth of 5% to 7% in FY25E/FY26E looks challenging due to competitive pricing of propane;Gujarat Gas will likely take a price hike in CNG and PNG to maintain Ebitda margin guidance of Rs 5 to Rs 6 per scm..We tweak FY25E/FY26E/FY27E earnings estimates by -5%/-6%/-6% mainly due to changes in the PNG -I volume assumption stemming from the slowdown in Morbi and ongoing challenges from Propane. As a result, we reduced PNG -I volume assumption by 4%. We maintain our ‘Reduce’ recommendation on Gujarat Gas with SOTP- based target price of Rs 531 (earlier Rs 538) for the merged entity and we will keep our model on the existing business until we receive more financial details from the Gujarat State Petroleum Corporation group..Click on the attachment to read the full report:.M&M, Bajaj Electricals, Apollo Hospital, Max Healthcare, Indian Hotel, NCC & More Q2 Review: HDFC Securities.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 Q2 Results Review - Slowdown At Morbi Dragged Volume: Dolat Capital

The brokerage maintains 'Reduce' rating on the stock on the existing business till the time further clarity comes with more financial details of the GSPC group.

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Gujarat Gas Q2 Results Review - Slowdown At Morbi Dragged Volume: Dolat Capital

The brokerage maintains 'Reduce' rating on the stock on the existing business till the time further clarity comes with more financial details of the GSPC group.

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