Gujarat Gas zooms in Q4, stock surges with volume spurt

Gujarat Gas, the company engaged in city gas distribution is jointly promoted by Gujarat State Petronet, Governor of Gujarat and Gujarat State Energy Generation. The company posted its Q4 earnings report on May 11, after market hours followed by recommendation of a dividend of Rs. 4 per equity share of Rs. 10 each. The same was depicted in the stock price movement on Monday. The stock of Gujarat Gas opened on a positive note and surged more than 5.5 per cent with 8.68 times volume spurt.

Gujarat Gas posted revenue and PAT growth of 10.3 and 9.9 per cent, respectively in its Q4FY18 results. Its TTM data too showed a revenue and PAT growth of 21.2 and 32.7 per cent, respectively from FY17 numbers. In April 2018, the company increased prices of CNG and PNG, after the central government increased the domestic natural gas price.

The stock of Gujarat Gas on Monday, rested its Descending Triangle pattern breakout at 860 levels on Monday. Earlier it had given a breakout at 869 on April 27, but witnessed a pullback after hitting above 913, nearly up to 830. The 830 level acted as 200-day EMA support for the stock. The stock holds multiple support nearly at 812 levels. The breakout was supported by volume spurt and 14-period RSI giving multiple point downward sloping trendline breakout at 59 and currently quoting at 62. The stock holds potential upside in the near term.