Gujarat Gas Limited

Gujarat Gas limited is one of India’s largest Gas distribution player, Presence across 23 district in state of Gujarat, Union teritory of Dadra, Nagar Haveli & Thane, Company has India’s largest customer base in Residential, Commercial & Industrial segment with more than 24,000 km of Gas pipeline network, It has more than 400 CNG Stations and distributes natural gas to 14,50,000 households and to more than 3,700 Industrial customers

The company has witnessed significant volume growth in Industrial customers in FY 2020 compared to previous year, Volume increase was primarily on ban of usuage of coal in morbi industrial cluster, This will improve the revenue visibility in coming years, Plans are there to penetrate PNG(Commercial) & CNG (Transport) sectors

At present natural gas accounts for just 6% of total energy mix of country due to its low per capita consumption, Government is aiming to increase this to 15% by end of 2030, This can translate into 150% increase in revenue for natural gas players, With favorable government policies and reforms the per capita consumption of natural gas is also expected to rise

Net sales in FY-2020 stood at 10,300 Crores as against 6,174 Cr in FY 2018, Operating profit for FY 2020 stood at 1,730 Cr as against 941 Cr in FY 2018, Profit after tax stood at 1,198 Cr as against 291 Cr in FY 2018

Company is trading at a PE Ratio of 19.70 which is lower than 10 year median PE Ratio of 30.31

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