Gujarat Gas stock is on a uptrend gaining 30% in less than a month as brokerages bet big raising targets and the company delivers stellar Q4 earnings.
Brokerages are upbeat, with Nomura placing Gujarat Gas at their top pick in the sector. Nomura has reiterated a BUY call on the stock almost doubling their price target to ₹800/share from ₹475. It implies a 21% further upside as the stock was trading around ₹660 levels on Thursday morning.
Nomura noted that the second wave impact on the company was low as the volume revival was the sharpest in FY21 and the brokerage expects the momentum to continue in FY22. As restrictions are being lifted gradually in many of company's operating areas, natural gas demand is likely to improve
Net debt declined sharply by 61% y-o-y in FY21. It is noteworthy that the management indicated
that the company could repay the entire debt but would take advantage of low-interest costs as of now.