Buy Gujarat Gas, target price Rs 553: Edelweiss

Edelweiss has buy call on Gujarat Gas with a target price of Rs 553. The current market price of Gujarat Gas is Rs 506.7. Edelweiss recommended to keep stop loss at Rs 497.5

Gujarat Gas, incorporated in the year 2012, is a Mid Cap company (having a market cap of Rs 35214.60 Crore) operating in Gas & Petroleum sector.

Gujarat Gas key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 4126.38 Crore, down -22.47 % from last quarter Total Income of Rs 5322.23 Crore and up 11.37 % from last year same quarter Total Income of Rs 3705.11 Crore. Company has reported net profit after tax of Rs 403.93 Crore in latest quarter.

The company’s top management includes Mr.Pankaj Kumar, Mr.Sanjeev Kumar, Mr.Milind Torawane, Prof.Yogesh Singh, Mr.Bhadresh Mehta, Mr.Raj Kumar, Mr.Balwant Singh, Dr.Rekha Jain. Company has Manubhai & Shah LLP as its auditors. As on 30-06-2022, the company has a total of 69 Crore shares outstanding.

Investment Rationale
Consolidating in a triangle pattern and breakout on higher side shows bullish volatility contraction.

Promoter/FII Holdings
Promoters held 60.89 per cent stake in the company as of 30-Jun-2022, while FIIs owned 5.18 per cent, DIIs 10.01 per cent.