'GSPL can touch Rs 100 in near term'

Ashit Suri, fundamental research analyst, JV Capital Services, to find out his views on the outlook of GSPL.

How do you believe the rise in gas prices will impact the overall business of Gujarat State Petronet Ltd. (GSPL) and if you could give us a sense of the price target for that stock?

GSPL compared with its peers in this space is the most attractive valued. It is trading at 15 times, trailing 12 months earnings. I am expecting the results to be very robust even in this quarter. And as per the last quarter, the company has shown a net profit of around 313%, which is very good and going ahead, it is going into an expansion spree as far as pipelines are concerned and easy availability and volume growth as far as gas availability is concerned from the KG D-6 basis as well as LNG imports tie-up.

We are expecting GSPL to continue to do well from this level going ahead in the next few quarters. For the near term, I could see with the market volatility reducing, the stock could touch levels of around close to Rs 100 in the near term and if you are looking at a longer horizon also, there could be a 20% upside from these levels easily.