India's Gujarat Gas volumes to get boost from falling LNG prices - Equirus

Gujarat Energy

02/01/2024 10:11

** Equirus Securities says falling spot liquefied natural
gas (LNG) prices will help Gujarat Gas Ltd's  GGAS.NS  volumes,
margins recover
    ** Brokerage rates stock "buy" and upgrades EPS estimate for
FY25 by 16%, FY26 EPS estimate by 3%
    ** LNG prices fell 30% in December to $11.2/mmbtu
    ** GGAS was hit badly when LNG prices soared in 2022, with
key clients from industrial hub of Morbi switching from LNG to
propane
    ** With lower prices, GGAS can regain some volume from
propane - Equirus
    ** Gas distributor's shares closed up 3% at 493.85 rupees,
its highest since late May; rose 8% over last 2 sessions
    ** Equirus' price target of 537 rupees higher than analysts'
median PT of 468.5 rupees - LSEG data

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))