Review

GUJARAT GAS

Ticker : 539336 
FV:Rs.2 
52-Week H/L:Rs.195/116

We had recommended Gujarat Gas Ltd. in volume no. 35, issue no. 43 (dated August 19, 2019), when the scrip was trading at Rs. 187.9. The company is engaged in processing, transmission and distribution of natural gas. It supplies gas to industrial, commercial and domestic customers. We had previously recommended the stock based on its robust financial performance. On the consolidated financial front, the company’s revenue for Q1FY20 came in at Rs. 2670.82 crore, up by 42.27 per cent compared to Rs. 1813.53 crore posted in Q1FY19. The PBIDT in Q1FY19 was Rs. 466.49 crore, an increase of 87.67 per cent from Rs. 248.57 crore posted in the same quarter of the previous fiscal. The PAT rose by 152 per cent to Rs. 233.68 crore in Q1FY20 from Rs. 92.73 crore posted in Q1FY19. The company is looking at strategies to increase its volume growth. Based on our analysis, we recommend a HOLD.