Buy Gujarat State Petronet, target price Rs 400 : ICICI Securities

ICICI Securities has buy call on Gujarat State Petronet with a target price of Rs 400. The current market price of Gujarat State Petronet is Rs 275.95.

Gujarat State Petronet, incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 15563.77 Crore) operating in Gas & Petroleum sector.

Gujarat State Petronet key Products/Revenue Segments include Income From Transportation Services, Electricity and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 4467.79 Crore, down -19.62 % from last quarter Total Income of Rs 5558.32 Crore and up 6.84 % from last year same quarter Total Income of Rs 4181.81 Crore. Company has reported net profit after tax of Rs 621.82 Crore in latest quarter.

The company’s top management includes Mr.Pankaj Kumar, Mrs.Shridevi Shukla, Mr.Tapan Ray, Mr.Bhadresh Mehta, Dr.Sudhir Kumar Jain, Dr.Bakul Dholakia, Prof.Yogesh Singh, Mr.M M Srivastava, Mr.J P Gupta, Mr.Sanjeev Kumar, Mr.Raj Kumar. Company has Anoop Agarwal & Co. as its auditors. As on 30-09-2022, the company has a total of 56 Crore shares outstanding.

Investment Rationale
The combination of weak gas demand, supply shortages caused by geopolitical issues (Gazprom force majeure) and pricing(high spot LNG prices constraining Dahej third party regas offtake) is likely to lead to another weak quarter for GAIL, PLNG and GSPL.

Promoter/FII Holdings
Promoters held 37.63 per cent stake in the company as of 30-Sep-2022, while FIIs owned 16.54 per cent, DIIs 24.19 per cent.