Buy Gujarat Gas, target price Rs 370: Motilal Oswal
Motilal Oswal has a buy rating on Gujarat Gas with a target price of Rs 370, valuing it at 22 times FY22E EPS. The share price moved down by -0.68 per cent from its previous close of Rs 292.55. The stock’s last traded price is Rs 290.55.
Total sales are currently at 70–75 per cent of normal volumes, with strong demand from pharma and agrochem units in Ankleshwar, Panoli, Vapi, and others, says the brokerage. Morbi volumes are currently at around 3.5mmscmd with almost 500 units operational). Gujarat Gas expects a ramp-up to 4–4.5mmscmd by the end of the month. Demand for various products is strong, but their manufacturing needs to be streamlined.
