Gujarat Gas Co.- Re-charged for growth :; Emkay

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Gujarat Gas Co. Ltd.

Re-charged for growth

BUY

CMP: Rs 378                                       Target Price: Rs 481

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n     Shifting focus from Bulk to Industrial retail and CNG segment

n     Management guided volume growth of 8-10% for CY11

n     Due to higher cost of RLNG, another round of price revision expected within short span, mainly in CNG segment 

n     Given its monopoly in cities of Gujarat, expected volume growth plus Zero debt and robust business model with no commodity risk, We maintain BUY rating with TP of Rs.481