GSPL @ 51 for a target of Rs 56

by khalid on 04/07/2009 · 0 comments

ICICI Securities has assigned a ‘buy’ rating to Gujarat State Petronet (GSPL), and valued the stock at Rs 56 per share. “GSPL’s blended tariffs have increased 38% to Rs 1.14/scm from Rs 0.83/scm over the past two quarters. Since GSPL would more than double, its transmission volumes in H1FY10, increased tariffs would positively surprise on the earnings front in the next two quarters before the regulated tariff regime is finally implemented,” said a ICICI Securities note to clients.

“We expect Q1-Q2FY10 to be phenomenal. And hence, GSPL will likely outperform the market. Key stock triggers are additional gas volumes for GSPL’s pipelines post the commencement of production from Reliance Industries’ KG-D6 field and increased capacity of the Dahej LNG terminal,” the note added.

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