Centrum has a buy call on Gujarat Gas, target price Rs 315
Centrum Broking has given a buy rating to Gujarat Gas with a target price of Rs 315. The share price moved up by 1.42 per cent from its previous close of Rs 288.55. The last traded stock price is Rs 292.65.
Gujarat Gas reported highest ever volumes of 9.9mmscmd, up 53 per cent year on year. While April volumes slumped to ~1.5mmscmd, in May, it recovered to over 4 and now the volumes at more than 6mmscmd. According to the brokerage, this implies volumes can again cross 9mmscmd by Q4FY21E.
The company reported highest-ever EBITDA/scm of Rs 4.8/scm (+16 per cent year on year) for FY20. The brokerage believes the EBITDA/scm will further improve to Rs 5.5/scm (helped by soft spot NG prices) over FY21-22E, well above FY15-20 average of Rs 4/scm.
