Gujarat Gas reports better-than-expected Q4 nos; what should investors do?
Gujarat Gas share price: The state-owned gas company in the fourth quarter reported an 86 per cent rise in standalone net profit at Rs 409.5 crore.
Gujarat Gas share price: Shares of Gujarat Gas traded in the green on Tuesday, (May 7), after the company reported its Q4FY24 numbers on Monday after market hours.
At around 10:04 a.m., shares of Gujarat Gas traded 0.88 per cent or Rs 4.8 higher at Rs 552.45 apiece. The market capitalisation of the company at around the same time stood at Rs 38,136.81 crore.
The state-owned gas company in the fourth quarter reported an 86 per cent rise in standalone net profit at Rs 409.5 crore against Rs 220.3 crore in the October to December quarter. The profit after tax (PAT) was estimated at Rs 345 crore by Zee Business Research.
Its standalone total revenue for the quarter stood at Rs 4,134 crore compared to Rs 3,929 crore quarter-on-quarter (QoQ). The revenue was estimated at Rs 4,030 crore.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 591 crore against Rs 401 crore which implies a 47.5 per cent rise QoQ. The margins of the company for the quarter ended March 31 stood at 14.3 per cent against 10.2 per cent QoQ.
As per the regulatory filing, during FY 2023-24, the company added close to 1,87,000 new domestic customers.
Furthermore, the company's volume of 2,79,000 scmd is added due to the commissioning of new industrial customers. Moreover, as of March 31, 2024, the company has a signed volume of 7,70,000 scmd which will be commissioned in the coming days.
Anil Singhvi's view on Gujarat Gas
Zee Business Managing Editor Anil Singhvi recommended buying futures of Gujarat Gas for targets of Rs 558 and Rs 565 apiece keeping the stop loss at Rs 542.
As per Singhvi, the company's results better than estimates and its operational performance is strong.
What should investors do?
JP Morgan maintained an 'underweight' rating and raised the target to Rs 396 from Rs 360 apiece. Meanwhile, Macquarie continued with an 'underperform' rating and gave a target of Rs 460 apiece.
Additionally, Citi continued with a 'sell' and gave a target of Rs 450 apiece.
Gujarat Gas share price: Past performance
In a year, Gujarat Gas shares have gained over 18 per cent against Nifty50's rise of over 22 per cent.
May 7 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
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