Analyst corner: GSPL: ‘Sell’ stays with revised fair value of Rs 210
GSPL’S STANDALONE earnings peaked out in FY2020 boosted by lower tax, while EBITDA increased modestly by
2% despite a healthy 9% growth in volumes. We expect earnings to decline meaningfully hereon led by tax-related 11% cut in tariffs in FY2021, lower volumes due to Covid- 19 impact in near term and reduction in LNG off-take by RIL in medium term and sharp 20%+ cut in tariffs in FY2023 in lieu of volume-led-profit surplus for FY2019-22.
‘Sell’ stays with a revised FV of Rs 210. The company may face headwinds to industrial volumes, particularly in
