India's Gujarat Gas hits 5-month low as Jefferies cuts to 'underperform'

Gujarat Energy

13/01/2023 08:08

** Shares of Gujarat Gas  GGAS.NS  fall as much as 5.31% to
442 rupees, their lowest level since Aug. 8
    ** Stock marks sharpest intraday pct decline since Dec. 23
2022; on track for fourth consecutive session of loss
    ** Jefferies downgrades the stock to "underperform" from
"buy" rating, cuts price target to 400 rupees from 570 rupees  
    ** The global brokerage cites weak volume outlook and
pricing power deterioration as reasons for the downgrade
    ** Propane prices could remain weak over 1HCY23, amid
depressed demand from major consumer China, Jefferies says in a
note 
    ** GGAS' volume loss in Morbi, Gujarat, after the switch
over  from LNG into propane, weighs on company's pricing power,
margin outlook and volume recovery - Jefferies
    ** More than 2.3 mln shares change hands by 13:13 p.m. IST,
2x the 30-day avg 
    ** Analysts on an average have a "hold" rating, median PT is
565 rupees- Refinitiv data
    ** Stock fell 23.42% in the last year
 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com))