Brokerages bearish on Gujarat Gas after gas distributors weak Q3 nos; shares slump
At 10:36 am, Gujarat Gas shares traded lower by Rs 31.7, or 5.5 per cent, at Rs 549.2 apiece.
Gujarat Gas shares fell sharply on Friday (February 16) after several brokerages remained bearish on the stock following a weak quarterly performance by the city gas distribution company. The Gujarat Gas stock fell as much as 6.2 per cent to Rs 545 apiece on BSE.
At 10:36 am, Gujarat Gas shares traded lower by Rs 31.7, or 5.5 per cent, at Rs 549.2 apiece.
How did Gujarat Gas perform in October-December period (Q3 FY24)?
After market hours on Thursday, the gas distributor reported a 26 per cent quarter-on-quarter fall in standalone profit after tax (PAT) to Rs 220 crore for the October-December period.
Its revenue from operations increased 2.2 per cent sequentially to Rs 3,929 crore for the fiscal third quarter.
Zee Business analysts had pegged the gas distribution firm’s December-quarter net profit at Rs 283 crore and revenue of Rs 4,030 crore.
Read more on Gujarat Gas Q3 earnings
What brokerages recommend on Gujarat Gas
CLSA kept a 'sell' call on Gujarat Gas, citing the company’s disappointing performance and muted commentary, with a target of Rs 360 per share.
Citi also maintained a 'sell' rating on the stock but raised its target to Rs 450 from Rs 425 apiece.
JPMorgan retained an 'underweight' rating and raised its target price to Rs 360 from Rs 325.
Jefferies also continued with its 'underperform' rating on Gujarat Gas. However, the brokerage raised its target for the stock to Rs 470 from Rs 385.
Nomura downgraded Gujarat Gas to 'underperform' from 'neutral' but raised its target to Rs 505 from Rs 460 per share.
Morgan Stanley maintained an 'overweight' rating Gujarat Gas after the company’s earnings announcement, with a target price of Rs 579 per share.
Gujarat Gas share price: Past performance
In a year, Gujarat Gas shares have risen over 13 per cent, underperforming a rise of 21 per cent in the headline Nifty index.
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