MOSL: GUJARAT GAS (Neutral)-Competitive pressure impacting performance
GUJARAT GAS: Competitive pressure impacting performance
(GUJGA IN, Mkt Cap USD1.6b, CMP INR159, TP INR151, 5% Downside, Neutral)
- EBIDTA increased 14% YoY (-21% QoQ) to INR2.5b (in-line) in 4QFY19. PAT grew 77% YoY (-23% QoQ) to INR1.2b (our estimate: INR921m), primarily due to a lower tax rate of 22.7% owing to write-back of excess tax provision and accrued income tax refund during the year. Total sales volumes declined 5% YoY (-2% QoQ) to 6.4mmscmd (in-line).
- EBITDA/scm of INR4.3 was in line with our estimate (4QFY18: INR3.7; 3QFY19: INR5.3).
- PNG industrial/commercial (PNG I/C) volumes stood at 4.3mmscmd (-7% YoY, -5% QoQ), while PNG household volumes were at 0.6mmscmd (-13% YoY, +15% QoQ). We have modeled PNG sales volumes of 6.6/7.3mmscmd for FY20/21, in line with the expected demand boost at Morbi.
- CNG volumes stood at 1.5mmscmd (+8% YoY, +3% QoQ). We have modeled CNG volumes at 1.5/1.7mmscmd for FY20/21. The company added 63 new CNG stations in FY19.
Gujarat Gas Ltd Formerly known as Gujarat Gas Company Limited. Gujarat Gas Company Limited is an India-based company. The Company is engaged in Natural Gas Business in Gujarat. Natural gas business involves distribution of gas from sources of supply to centers of demand and to the end customers. The Company has underground pipe lines consists of mild steel (ME) and polyethylene (PE). These lines gas is supplied to Residential, Industrial, Commercial and Compressed Natural Gas (CNG). The Company also supplies piped natural gas to customers and retails compressed natural gas. Gas is used by customers for applications, such as heating, cooling, power and process. The Company has two subsidiaries namely Gujarat Gas Financial Services Limited and Gujaratgas Trading Company Limited.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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