Gujarat Gas - Q4 FY21 Result Update - YES Securities

(Rating: ADD, TP: Rs565, Upside: 4.6%)

- The Operating profit and PAT for the quarter stood at Rs 5.5bn (+30% YoY; -10% QoQ) and Rs 3.5bn (+42% YoY; -11% QoQ), respectively, beating our and street estimates.

- Total gas sales stood at a strong 12.1mmscmd (+22% YoY), with growth across segments

- The Gross spread and EBITDA per unit stood at INR 7/scm (3QFY21: 7.8/scm) and INR 5.1/scm(3QFY21: 5.8), respectively, a sequential drop on account of sudden increase in LNG price

- On backs of stronger gas sales momentum, we upgrade our estimates for FY22 and FY23 by 9%, leading to a revision in our TP to Rs 565/sh (from Rs 515/sh) leading to an upgrade in our rating to ADD (from REDUCE)

Shares of Gujarat Gas Ltd was last trading in BSE at Rs.566.7 as compared to the previous close of Rs. 540.2. The total number of shares traded during the day was 1083034 in over 30060 trades.

The stock hit an intraday high of Rs. 578 and intraday low of 544.25. The net turnover during the day was Rs. 615262553.

Source : Equity Bulls

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