Government of Gujarat backed - high ROE & high ROCE multibagger gas stock signs MoU with Indian Oil Corporation Ltd

The shares of the company have an ROE of 24 per cent and an ROCE of 31 per cent.

Gujarat Gas Ltd (GGL) informed that the company and Indian Oil Corporation Limited (IOCL) have signed a non-binding Memorandum of Understanding (MoU) to broaden the scope and accessibility of energy solutions for consumers. This significant alliance between two major players in the energy sector is set to deliver an extensive range of products and services throughout GGL’s authorized areas.

Key Highlights of the MoU include:

1. IOCL providing liquid fuels at GGL outlets.

2. IOCL providing automotive lubricants, greases, and specialities at the GGL outlet.

3. Setting up of CNG facility at IOCL COCO outlets.

4. GGL setting up of CNG mother facility at IOCL outlets. 

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Gujarat Gas Limited (GGL), a government-owned natural gas distribution company in India, provides CNG and PNG connections to residential, industrial, commercial, and non-commercial customers across several states and a union territory. It has an extensive pipeline network and is part of a larger group with a strong presence in the natural gas industry. The company has a market cap of Rs 38,000 crore and has been maintaining a healthy dividend payout of 17.2 per cent.

The stock has seen heavy buying for 3 straight trading sessions and today saw a spurt in volume by more than 2.57 times on BSE. The shares of the company have an ROE of 24 per cent and an ROCE of 31 per cent. The stock is up by 47 per cent from its 52-week low of Rs 397.20 per share and gave multibagger returns of 263 per cent in 5 years. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.