Buy Gujarat State Petronet, target price Rs 350: Motilal Oswal

Motilal Oswal has buy call on Gujarat State Petronet with a target price of Rs 350. The current market price of Gujarat State Petronet is Rs 290.15.

Gujarat State Petronet Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 16429.84 Crore) operating in Gas & Petroleum sector.

Gujarat State Petronet Ltd. key Products/Revenue Segments include Income From Transportation Services, Electricity, Gas Natural and Other Operating Revenue for the year ending 31-Mar-2023.



Financials
For the quarter ended 31-03-2024, the company reported a Consolidated Total Income of Rs 4590.98 Crore, up .09 % from last quarter Total Income of Rs 4586.63 Crore and up 6.39 % from last year same quarter Total Income of Rs 4315.09 Crore. Company reported net profit after tax of Rs 670.91 Crore in latest quarter.


Investment Rationale: We keep our estimates unchanged as the 4Q performance was largely inline with our estimates. The stock is trading at a P/E of ~24x FY26E EPS ofINR12.1 and EV/EBITDA of ~15.4x. Maintain BUY with a TP of INR350.

Promoter/FII Holdings
Promoters held 37.63 per cent stake in the company as of 31-Mar-2024, while FIIs owned 15.67 per cent, DIIs 24.7 per cent.