Buy Gujarat State Petronet, target Rs 255; expect 20% tariff revision by June 2018: Deutsche Bank

Shares of Gujarat State Petronet (GSPL) rose nearly 2 percent intraday Tuesday as foreign brokerage house Deutsche Bank has maintained buy rating and raised target price to Rs 255 from Rs 249 per share.

According to the firm, the company’s volume growth to continue and expect gas transmission volume CAGR of 12 percent over FY17-20.

FY18 is turning out to be the inflection point for gas transmission business. It expect tariff revision of about 20 percent by June 2018, it added.

The company is cheapest Indian gas utility with strong earnings growth outlook.

At 12:15 hrs Gujarat State Petronet was quoting at Rs 203.70, up Rs 2.55, or 1.27 percent on the BSE.

The share touched its 52-week high Rs 235.50 and 52-week low Rs 152.00 on 22 December, 2017 and 27 February, 2017, respectively.

Currently, it is trading 13.5 percent below its 52-week high and 34.01 percent above its 52-week low.

Posted by Rakesh Patil