Buy Gujarat State Petronet, target price Rs 345: JM Financial

JM Financial has buy call on Gujarat State Petronet with a target price of Rs 345.The current market price of Gujarat State Petronet is Rs 277.9.

Gujarat State Petronet, incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 15685.08 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 4039.75 Crore, down -9.58 % from last quarter Total Income of Rs 4467.79 Crore and down -26.89 % from last year same quarter Total Income of Rs 5525.88 Crore. Company has reported net profit after tax of Rs 540.42 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 31-12-2022, the company has a total of 56 Crore shares outstanding.

Investment Rationale
The brokerage has raised GSPL’s FY24-25EBITDA by ~3% due to slightly higher volume assumption (given moderation in spot LNG prices) and assuming stable tariff.

Promoter/FII Holdings
Promoters held 37.63 per cent stake in the company as of 31-Dec-2022, while FIIs owned 17.28 per cent, DIIs 24.26 per cent.