Gujarat Energy
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Gujarat Energy's recent performance highlights a robust EBITDA driven by its gas trading segment, despite facing challenges in the Morbi industrial cluster due to increased propane availability. Management's proactive measures, including the development of a dedicated propane import terminal and continued investment in CNG infrastructure, are pivotal for maintaining competitive positioning and supporting revenue growth. Vista's financial outlook anticipates stable revenue growth aligned with historical trends, alongside improving margins due to effective cost management and strategic sourcing. The company's low leverage enhances financial stability, reinforcing its capacity to navigate market fluctuations. Industry dynamics, particularly the transition to cleaner energy and government initiatives to expand piped gas networks, provide a favorable backdrop for growth. However, competitive pressures from alternative fuels and potential execution delays in infrastructure projects remain critical watchpoints. Over the next 12-24 months, Gujarat Energy's focus on expanding its CNG network and securing long-term gas contracts will be essential for sustaining its market share and profitability
Why We Like This Stock
- Strong EBITDA performance driven by gas trading, indicating effective management of market dynamics
- Proactive infrastructure investments and strategic sourcing plans to enhance competitive positioning
- Favorable industry trends towards cleaner energy and government support for gas network expansion
Things To Watch Out For
- Competitive pressures from alternative fuels, particularly in the Morbi industrial cluster, could impact demand
- Potential execution delays in infrastructure projects may hinder growth plans
- Volatility in spot LNG markets poses risks to revenue stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 15,690 | 16,487 | 23,614 | 31,054 | 36,848 |
| Profit Before Tax (Cr.) | 1,484 | 1,558 | 2,591 | 3,582 | 3,941 |
| PBT Margin | 9.5% | 9.4% | 1097.2% | 11.5% | 10.7% |
| Net Profit (Cr.) | 1,167 | -98 | 2,546 | 2,686 | 2,956 |
| Earnings Per Share | 12.5 | -1.0 | 27.2 | 28.7 | 31.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 530 | 02-Jun-2026 |
| ICICI Securities | ► Hold | 430 | 02-Jun-2026 |
| Jeffries | ► Hold | 415 | 02-Jun-2026 |
| Kotak Securities | ► Add | 453 | 03-Jun-2026 |
| Motilal Oswal | ▲ Buy | 360 | 13-Aug-2026 |
| Nomura | ▲ Buy | 511 | 02-Jun-2026 |
| Prabhudas Liladhar | ► Hold | 275 | 13-Aug-2026 |