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.
HDFC Securities Institutional Equities
City gas distribution companies, Indraprastha Gas Ltd., Gujarat Gas Ltd., and Mahanagar Gas Ltd. have corrected by 26-29% over the last 12 months, underperforming the BSE Sensex by 28-31%, as investors expected sustained margin pressure with rising input gas costs.
We believe the correction is overdone especially as the CGDs have passed on the input gas cost increase underscoring their pricing power, the government has tweaked domestic gas supply to favor the CGDs and compressed natural gas/domestic piped natural gas volume has seen minimal adverse impact of the retail price increases.
Notwithstanding the challenges, we expect overall gas demand from the CNG and domestic piped natural gas sectors to grow at 15.7% compound annual growth rate over FY22-27 supported by aggressive expansion in infrastructure.
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