Market Movement
Market Movement
TREND | 11 Nov 2019
HDFC Securities
We like GSPL owing to the (1) Robust volume outlook (2) Smoothening of cyclicality in its earnings post-acquisition of a controlling stake in Gujarat Gas (3) Steady cash flows (FCF of Rs 44.17bn over FY20-23E) from transmission business which will turn the company's position to a net cash one. We value the standalone business at Rs 144 using DCF. To this, we add Rs 100 for its investments in Gujarat Gas, Sabarmati Gas and others and arrive at a TP of Rs 244. We maintain BUY on GSPL post a better than estimated performance in 2QFY20. Benign spot LNG prices (1) Ensure sustainability of the current gas demand from industrial customers and (2) Encourage RIL to continue using LNG as well. Our SOTP based TP is Rs 244/share.
Axis Direct released a Strategy Note report for Market Movement on 18 Jun, 2025.
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