Gujarat State Petronet Ltd - Results in line - Emkay

Reco: BUY
CMP: Rs 71
Target Price: Rs 86

- Results were broadly in line with our and street expectation with net sales at Rs.2.7bn and PAT at 1.24bn.

- Transmission tariff grew by 11% YoY & decline 7.6% QoQ to Rs.0.90/scm, while transmission volume decline by 15.3% YoY & flat QoQ to 31.1mmscmd led by decline in KG D6 volume.

- Expects transmission volume to remains at current level of 31mmscmd in coming quarters.

- The recent correction in the stock offers attractive valuations at 8.4x FY14E EPS and 1.2x P/Bv, maintain BUY.

Source : Equity Bulls

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