IIFL re-iterates ‘buy’ on Gujarat State Petronet, target price Rs 270

IIFL has re-iterated its ‘buy’ rating on Gujarat State Petronet in the long term with a target price of Rs 270. Shares of GSPL gained 0.77% to Rs 215.80 on Wednesday while the BSE Sensex rose 161.83 points to 36,724.74.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 3021.49 crore, up 31.51 % from last quarter sales of Rs 2297.47 crore and up 44.49 % from last year same quarter sales of Rs 2091.21 crore. The company has reported net profit after tax of Rs 437.68 crore in latest quarter.

Investment Rationale

The company has plans to expand its gas pipeline network in Gujarat to ensure higher penetration and seamless flow of the molecule across the state. This according to the brokerage would ensure long-term growth for the company. In addition to its core transmission business, GSPL derives value from its 54% stake in Gujarat Gas.