Gujarat State Petronet - Tariff Order; PNGRB Throws Up A Negative Surprise: ICICI Securities

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The oil and gas regulator Petroleum and Natural Gas Regulatory Board, in an order issued today, declared a revised tariff for Gujarat State Petronet Ltd.'s Gujarat gas grid, declaring an applicable tariff of just Rs 18.1/metric million British thermal unit (~Rs 0.7/standard cubic metre) versus Rs 50.8/ mmbtu asked for (Rs 1.7–1.8/scm, roughly what has been charged by the company over FY20–24, excluding ‘take or pay’ charges). This is a material negative surprise for the company, with most estimates (including ours) building in flattish tariffs over FY25–26E versus FY23–24 average in our base case estimates. The regulator seems to have disagreed materially with the company on almost all tariff parameters, cutting assumptions on capex, opex and applicable volumes, driving the steep change. Downgrades to Sell with a revised target price of Rs 304 (earlier Rs 395)..Click on the attachment to read the full report:.Gujarat State Petronet - New Tariff Order Led To A Sharp Earnings Cut; Downgrade To Sell: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Gujarat State Petronet - Tariff Order; PNGRB Throws Up A Negative Surprise: ICICI Securities

Sharp cut in FY25/26E EPS estimates; downgrade to Sell

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Gujarat State Petronet - Tariff Order; PNGRB Throws Up A Negative Surprise: ICICI Securities

Sharp cut in FY25/26E EPS estimates; downgrade to Sell

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