Ambit Capital maintains 'buy' on GSPL
Ambit Capital has retained its ‘buy’ recommendation on Gujarat State Petronet (GSPL), but reduced price target to Rs 45 from Rs 64 earlier.
GSPL
CMP: Rs 32.55
Target price: Rs 45
Ambit Capital has retained its ���buy��� recommendation on Gujarat State Petronet (GSPL), but reduced price target to Rs 45 from Rs 64 earlier.
���Our revised target is primarily based on the 30% profit before tax (PBT) contribution to the Gujarat Socio Economic Development Society (GSEDS) fund to perpetuity, starting FY10E. Our lower target price also reflects the slow volume ramp-up from the RIL contract,��� an Ambit note to clients said. ���Fuel switching on account of favourable naphtha economics led to a significant drop in spot volumes for GSPL during Q3FY09. With prices now favouring LNG usage again, we expect the company���s volumes to normalise by Q4FY09E,��� the note added.
CMP: Rs 32.55
Target price: Rs 45
Ambit Capital has retained its ���buy��� recommendation on Gujarat State Petronet (GSPL), but reduced price target to Rs 45 from Rs 64 earlier.
���Our revised target is primarily based on the 30% profit before tax (PBT) contribution to the Gujarat Socio Economic Development Society (GSEDS) fund to perpetuity, starting FY10E. Our lower target price also reflects the slow volume ramp-up from the RIL contract,��� an Ambit note to clients said. ���Fuel switching on account of favourable naphtha economics led to a significant drop in spot volumes for GSPL during Q3FY09. With prices now favouring LNG usage again, we expect the company���s volumes to normalise by Q4FY09E,��� the note added.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
