Nomura expects price cuts by India's Gujarat Gas to drive volume recovery in short term

Gujarat Energy

01/03/2024 05:11

** Shares of gas distributor Gujarat Gas  GGAS.NS  up 2.4%
at 579 rupees
    ** GGAS' 8% price cut for industrial PNG supplies to the
Morbi cluster to drive healthy uptick in volumes for short term
- brokerage Nomura
    ** Morbi, located in Gujarat state, has the country's
largest ceramic industry cluster
    ** However, as underlying propane prices begin to decline
from May, see risks to volume recovery - Nomura
    ** GGAS to find it challenging to keep cutting prices as
incremental decline in propane prices outpaces decline in spot
LNG prices - Nomura 
    ** Avg rating of 26 analysts equivalent to "hold;" median
price target is 532 rupees - LSEG data 
    ** Stock up 24.5% YTD
    

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))