
Shares of Gujarat Gas Ltd fell 6% in early trade today after international brokerage CLSA assigned a sell call to the stock post Q3 earnings. CLSA cited disappointing performance & muted commentary in Q3 earnings behind its bearish stance. Below estimates PAT due to lower margins coupled with margin miss also was a key factor behind the stance.
The management has guided for 10% volume growth (15% plus in CNG) & unit EBITDA margin of Rs 4.5-5.5/scm, CLSA said. It finds 30x PE multiple unsustainable.
Gujarat Gas stock tumbled 6% to a Rs 546 against the previous close of Rs 580.85 on BSE. Market cap of Gujarat Gas fell to Rs 38,209 crore. The stock of Gujarat Gas opened lower at Rs 570.70 today.
Gujarat Gas stock has surged 14.34% in a year and risen 14.63% in the last one year.
The stock has a beta of 0.4, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of Gujarat Gas stock stands at 59.6, signaling it's trading neither in the overbought nor in the oversold zone.
Gujarat Gas stock is trading lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.
Gujarat Gas reported a 40% fall in consolidated net profit to Rs 221 crore in the third quarter against Rs 371 crore in the year ago period. Revenue from operations climbed 7 percent in Q3 to Rs 4,084 crore compared to Rs 3,821 crore in Q3FY23.
For the quarter ended December 31, the sales volumes rose 26 percent to 9.16 mmscmd (million metric standard cubic metre per day) from 7.29 mmscmd last year. The industrial sales volumes increased to 5.53 mmscmd in the quarter from 4.05 mmscmd in the year-ago period, an increase of 36 percent.
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