• Call Our Support
    +91-9958406102

  • Our Working Hours
    Mon - Sat: 9:30 am - 6 pm

Here’s Why Brokerages Recommend Buying Gujarat Gas Stock; Over 31% Upside



By Malvika Gurung

Investing.com — Shares of the distributor Gujarat Gasoline had been buying and selling 5.7% greater at 2:10 pm on Wednesday, zooming 9% earlier within the session.

The corporate’s web revenue rallied 261.5% QoQ and 27.6% YoY to Rs 444.39 crore within the March quarter, whereas complete revenue surged 36.34% YoY to Rs 4,791.04 crore.

Its margin rallied by 1,040 foundation factors QoQ to fifteen% from 4.6% within the March quarter, far exceeding estimates of 8%, whereas EBITDA rallied 193.1% QoQ to Rs 697.5 crore,19% above the Avenue’s estimate.

A number of brokerage corporations have referred to as a Purchase score on the inventory, led by large margin enchancment, amongst different elements.

Citi reported that the corporate’s technique of lowering volumes aided in a pointy margin enchancment, with the worst possible behind. It maintained a Purchase name on the inventory and set a goal of Rs 630/share.

Jefferies has attributed the higher-than-expected margin development to a pointy 39% EBITDA development and set a goal of Rs 700/share on the inventory, a 31.2% upside.

HDFC (NS:) Securities has really useful shopping for the gasoline inventory, on accounts of improved margin, a portfolio of mature and new geographical areas, and compelling valuations, given superior return ratios among the many metropolis gasoline distribution gamers, cited an ET supply. The goal value is about at Rs 625/share.



Source link

Get Access To Free Mt4 Indicators & Much More