{"id":273477,"date":"2019-05-08T06:23:11","date_gmt":"2019-05-08T06:23:11","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=273477"},"modified":"2019-05-08T06:23:11","modified_gmt":"2019-05-08T06:23:11","slug":"stock-corner-buy-on-gujarat-gas-with-target-price-of-rs-185","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/stock-corner-buy-on-gujarat-gas-with-target-price-of-rs-185\/","title":{"rendered":"Stock corner: \u2018Buy\u2019 on Gujarat Gas with target price of Rs 185"},"content":{"rendered":"<p>Gujarat Gas reported softer than expected results in 4QFY19 with EBITDA 8% lower than JEFe led by EBITDA margin miss (Rs 4.3\/scm; JEFe: Rs 4.8\/scm) while volumes were 1.5% ahead. PAT, however, was 24% above JEFe due to lower taxes. But outlook is strong with Morbi volumes now at 4.5 mmscmd (uptick of 2 mmscmd vis-a-vis 1 mmscmd we build in) posing upside risks to our FY20E volume estimates. With the stock trading at 19x FY20E P\/E, we keep our \u2018Buy\u2019.<\/p>\n<p>Industrial volumes in 4QFY19 were down 6.8% q\/q but came 1.6% ahead of JEFe while overall volumes declined 3% q\/q coming 1.5% ahead of JEFe. EBITDA margins moderated q\/q to Rs 4.3\/scm in 4QFY19 (JEFe: Rs 4.8\/scm). We have built in Rs 4.5\/scm EBITDA margin in FY20E. EBITDA came 8.1% below JEFe mainly driven by the 9.5% miss in EBITDA margin while Gross margin was 2.4% below JEFe. Staff costs and other opex came ahead of JEFe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat Gas reported softer than expected results in 4QFY19 with EBITDA 8% lower than JEFe led by EBITDA margin miss (Rs 4.3\/scm; JEFe: Rs 4.8\/scm) while volumes were 1.5% ahead. PAT, however, was 24% above JEFe due to lower taxes. But outlook is strong with Morbi volumes now at 4.5 mmscmd (uptick of 2 mmscmd vis-a-vis 1 mmscmd we build in) posing upside risks to our FY20E volume estimates. With the stock trading at 19x FY20E P\/E, we keep our \u2018Buy\u2019. Industrial volumes in 4QFY19 were down 6.8% q\/q but came 1.6% ahead of JEFe while overall volumes declined 3% [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-273477","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/273477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=273477"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/273477\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=273477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=273477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=273477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}