Current price is more than the intrinsic value

Intrinsic Value

Stock has been generating better return on equity than bank FD

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Gujarat Gas - Down, But Certainly Not Out: ICICI Securities

Some analysts say concerns around the impact on demand because of the anticipated switch to propane are overstated

Gujarat Gas stock takes a beating on worries of volume slowdown

The brokerage has reiterated Buy on Gujarat Gas shares and retained it as top stock pick in the sector

Gujarat Gas shares hit 52-week low. Motilal Oswal says ‘Buy’, sees strong gain

Shares of Gujarat Gas and Petronet LNG declined after Jefferies said it sees pressure due to high LNG prices for CGD companies.

GAIL Volatile, Gujarat Gas And Petronet LNG Fall As Jefferies Flags Price Pressure

Asia Spot Gas prices jumped to $34/mmBtu as against last month's average prices of $23/mmBtu. This sudden rise in spot gas prices could impact Gujarat Gas’ volumes and/or margins. Gujarat Gas' dependence on imported gas is the highest as it derives most of its revenue by selling gas to industries. Nearly 75% of its total sales volume is from industrials.
At present, Gujarat Gas has a 30%-35% gas sourcing requirement that is dependent on the spot market, while the rest comes from domestic gas and long-term contracts. In the industrial region of Morbi – the main market of Gujarat Gas – industries are shifting to propane as gas has become expensive.
With further increases in prices, the shift toward propane could accelerate. On the other hand, if Gujarat Gas keeps the gas prices at current levels, then the same could impact margins.
#GasPrices #ETNow #FuelPrice

Rise In Spot Gas Prices Could Hurt Gujarat Gas | Asia Spot Gas Prices Jumped To $34/mmBtu | ET Now

Gujarat Gas (₹447.95): SELL

Based on the open interest future percentage, a short build-up was seen in 93 stocks including Nifty Financial, Dalmia Bharat, Delta Corp, Gujarat Gas, and ACC

Trade setup for today: Top 15 things to know before the opening bell

India’s largest city gas distributor by volume – Gujarat Gas Ltd. – has cut gas prices for industrial users for the first time in at least the last year. The prices have been cut by Rs 5 per standard cubic meter to Rs 58 per standard cubic meter. The cut in prices was one expected line as the prices of raw material – Japan Korea Market (Asia Spot Gas) – had reduced to around $20-25/mmBtu from its earlier highs of $30-35/mmBtu. According to analysts, the price cut would bring down the unit margin to Rs 6-7/scm from a current super normal margin of Rs 11-12/scm. Gujarat Gas had earlier removed the volume restriction on the gas supplied to industrial users. Post this, the volumes had already recovered to around 10.8 mmcmd from 9.9 mmscmd average in Q4FY22.
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Exclusive: Gujarat Gas Cut Gas Prices | Business and Market Latest News | ET Now

The Government of India recently made amendments to its gas allocation policy for the city gas distributors for the first time since 2014. According to the new rules, which were made applicable on May 16, it is now GAIL’s responsibility of providing gas to the CGDs.
For the month of June, the gas supplying rate set by GAIL stands at $8.05 per mmBtu which is largely similar to the price set on May 16. This price will now be applicable for the whole of June 2022. GAIL will allocate and supply 102.5% of the gas consumed in the previous quarter by any CGD. The gas cost appears to be positive from a gross margin standpoint as the price increases taken CGDs factor in these gas costs as well as any increase in other costs. Gujarat Gas, IGL, and MGL from the start of FY23 have hiked CNG prices by 16% to 28%.

#GasPrices #GasPirceHike #ETNow 



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Gas Cost Remains Stable For City Gas Distributors | ET Now Latest

Double Bottom Breakout on Gujarat Gas Ltd

ICICI Direct is bullish on Gujarat Gas has recommended buy rating on the stock with a target price of Rs 625 in its research report dated May 12, 2022.

Gujarat Gas Ltd

Gujarat Gas Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Gujarat Gas - Down, But Certainly Not Out: ICICI Securities

Gujarat Gas stock takes a beating on worries of volume slowdown

Gujarat Gas shares hit 52-week low. Motilal Oswal says ‘Buy’, sees strong gain

GAIL Volatile, Gujarat Gas And Petronet LNG Fall As Jefferies Flags Price Pressure

News Video

Rise In Spot Gas Prices Could Hurt Gujarat Gas | Asia Spot Gas Prices Jumped To $34/mmBtu | ET Now

Gujarat Gas (₹447.95): SELL

Trade setup for today: Top 15 things to know before the opening bell

News Video

Exclusive: Gujarat Gas Cut Gas Prices | Business and Market Latest News | ET Now

News Video

Gas Cost Remains Stable For City Gas Distributors | ET Now Latest

Gujarat Gas Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Gujarat Gas - Down, But Certainly Not Out: ICICI Securities

Gujarat Gas stock takes a beating on worries of volume slowdown

Gujarat Gas shares hit 52-week low. Motilal Oswal says ‘Buy’, sees strong gain

GAIL Volatile, Gujarat Gas And Petronet LNG Fall As Jefferies Flags Price Pressure

News Video

Rise In Spot Gas Prices Could Hurt Gujarat Gas | Asia Spot Gas Prices Jumped To $34/mmBtu | ET Now

Gujarat Gas (₹447.95): SELL

Trade setup for today: Top 15 things to know before the opening bell

News Video

Exclusive: Gujarat Gas Cut Gas Prices | Business and Market Latest News | ET Now

News Video

Gas Cost Remains Stable For City Gas Distributors | ET Now Latest

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock