Gujarat State Petronet Ltd.    
14 Mar 2019
HDFC Securities
We value GSPL's transmission business using Discounted Cash Flow (DCF) at Rs 120/sh. To this, we add Rs 87/sh as value of its investments in GGL, Sabarmati Gas (30% discount to EV/EBTDA valuation) and other investments (at book value) to arrive at the target price of Rs 207/sh. We initiate with BUY. In the wake of the Modi era, starting May-14 up to Dec-17, Gujarat State Petronets (GSPL) stock soared 237% to Rs 226 driven by a positive surprise in transmission volume (+11.5% CAGR). This led to EBITDA expanding at 11.1% CAGR and APAT at 22.4%.
Gujarat State Petron.. has an average target of 190.67 from 6 brokers.
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