Gujarat Gas Company Results above estimates, Maintain Buy ::Emkay

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Gujarat Gas Company

Results above estimates, Maintain Buy

BUY

CMP: Rs 375                                        Target Price: Rs 481

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n     GGCL reported results which were above our estimates at  Revenue level, primarily due to better realisation during the quarter

n     EBIDTA at Rs.1.1 bn, against Rs.1bn, growth of 6% YoY, mainly due to higher realisation  and volume growth of 4.2% YoY

n     Natural gas volume sold during the quarter was 303mmscm, growth of 4.2% YoY, but decline marginally by 2% on sequentially, due to lower offtake from Industrial 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