BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Gujarat Gas Ltd. has underperformed the broader index by ~50% over last four months, as geopolitical tensions keep spot liquefied natural gas prices at elevated levels of more than $30/metric million British Thermal unit.
Reports of ceramic units in Morbi switching to propane usage (competing fuel) have also impacted the stock performance. At current market price stock trades closer to -1 standard deviation consensus price-to-earnings of last three years of 17.6 times.
We believe Gujarat Gas is very well placed to navigate this situation and has tied spot LNG purchase till February 2023 at ~$28/mmbtu, when winter gas demand from Europe will be highest.
In the near term, we do not expect Gujarat Gas to compete with propane as prices are seasonally weak in Q2 and will increase in H2 (prices are higher in H2 for last five years except in FY19 due to pandemic).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR