NSEI:GUJGAS

Stock Analysis Report

Executive Summary

Gujarat Gas Limited engages in the distribution of city natural gas in India.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.

Share Price & News

How has Gujarat Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.09%

GUJGAS

-0.04%

IN Gas Utilities

0.5%

IN Market


1 Year Return

25.4%

GUJGAS

-7.2%

IN Gas Utilities

0.9%

IN Market

Return vs Industry: GUJGAS exceeded the Indian Gas Utilities industry which returned -7.2% over the past year.

Return vs Market: GUJGAS exceeded the Indian Market which returned 0.9% over the past year.


Share holder returns

GUJGASIndustryMarket
7 Day0.09%-0.04%0.5%
30 Day-1.6%0.6%1.0%
90 Day7.0%-4.6%-3.2%
1 Year26.1%25.4%-5.3%-7.2%2.8%0.9%
3 Year52.3%50.0%34.7%27.5%20.3%14.3%
5 Yearn/a24.6%11.0%43.1%29.8%

Price Volatility Vs. Market

How volatile is Gujarat Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gujarat Gas undervalued based on future cash flows and its price relative to the stock market?

22.58x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: GUJGAS (₹174.05) is trading above our estimate of fair value (₹118.73)

Significantly Undervalued: GUJGAS is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: GUJGAS is poor value based on its PE Ratio (22.6x) compared to the Gas Utilities industry average (18.8x).

PE vs Market: GUJGAS is poor value based on its PE Ratio (22.6x) compared to the Indian market (13.1x).


Price Based on Expected Growth

Low PEG Ratio: GUJGAS is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: GUJGAS is overvalued based on its PB Ratio (5.4x) compared to the IN Gas Utilities industry average (4.6x).


Next Steps

Future Growth

How is Gujarat Gas expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GUJGAS's forecast earnings growth (20.8% per year) is above the savings rate (7.6%).

Earnings vs Market: GUJGAS's earnings (20.8% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GUJGAS's revenue (11.1% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: GUJGAS's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GUJGAS's Return on Equity is forecast to be high in 3 years time (26%)


Next Steps

Past Performance

How has Gujarat Gas performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GUJGAS's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: GUJGAS's earnings growth over the past year (63.8%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: GUJGAS earnings growth over the past year (63.8%) exceeded the Gas Utilities industry 32.3%.


Return on Equity

High ROE: GUJGAS's Return on Equity (24.1%) is considered high.


Return on Assets

ROA vs Industry: GUJGAS's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: GUJGAS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Gujarat Gas's financial position?


Financial Position Analysis

Short Term Liabilities: GUJGAS's short term assets (₹10.4B) do not cover its short term liabilities (₹16.8B)

Long Term Liabilities: GUJGAS's short term assets (10.4B) do not cover its long term liabilities (32.8B)


Debt to Equity History and Analysis

Debt Level: GUJGAS's debt to equity ratio (94.7%) is considered high

Reducing Debt: GUJGAS's debt to equity ratio has reduced from 189.7% to 94.7% over the past 5 years.

Debt Coverage: GUJGAS's debt is well covered by operating cash flow (45.8%).

Interest Coverage: GUJGAS's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: GUJGAS has a high level of physical assets or inventory.

Debt Coverage by Assets: GUJGAS's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Gujarat Gas's current dividend yield, its reliability and sustainability?

1.23%

Expected Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.8%forecastin3Years1.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GUJGAS's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: GUJGAS's dividend (0.57%) is low compared to the top 25% of dividend payers in the Indian market (2.46%).

Stable Dividend: Whilst dividend payments have been stable, GUJGAS has been paying a dividend for less than 10 years.

Growing Dividend: GUJGAS's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13%), GUJGAS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GUJGAS's dividends in 3 years are forecast to be well covered by earnings (18.1% payout ratio).


Next Steps

Management

What is the CEO of Gujarat Gas's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Nitin Patil (57yo)

3.2yrs

Tenure

₹10,200,000

Compensation

Mr. Nitin Patil has been the Chief Executive Officer of Gujarat Gas Limited since August 11, 2016. Mr. Patil served as the In-Charge Chief Executive Officer at Gujarat Gas Limited from March 2, 2016 to Aug ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Nitin's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Nitin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: GUJGAS's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Board: GUJGAS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Himanshu Upadhyay (64yo)

    Senior Vice President of HR & Admin

    • Tenure: 2yrs
  • Rajeshwari Sharma

    Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹3.34m
  • Nitin Patil (57yo)

    Chief Executive Officer

    • Tenure: 3.2yrs
    • Compensation: ₹10.20m
  • Maqsood Shaikh (47yo)

    SVP of Commercial and Mktg

    • Tenure: 2.5yrs
  • Nitesh Bhandari (43yo)

    Chief Financial Officer

    • Tenure: 4.1yrs
    • Compensation: ₹3.30m
  • Dipen Chauhan

    Senior Vice President of Operations - 1

    • Tenure: 2.5yrs
  • Manish Goswami

    Senior Vice President of Ankleshwar for Operations - 1

    • Tenure: 0yrs
  • Dinesh Mehta

    Senior Vice President of Surat for Operations - 1

    • Tenure: 0yrs
  • K. S. Prasad

    Senior Vice President of Operations - 2

    • Tenure: 2.5yrs
  • Ragunath Kulai

    Senior Vice President of Technical Services

    • Tenure: 2yrs

Board Members

  • Jal Patel (82yo)

    Non Executive Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹213.00k
  • Krishna Chatterjee (78yo)

    Non Executive Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹261.00k
  • Manjula Pooja Shroff (55yo)

    Independent Women Director

    • Tenure: 4.5yrs
    • Compensation: ₹142.50k
  • Jagdip Singh (60yo)

    Chairman

    • Tenure: 3.2yrs
    • Compensation: ₹64.50k
  • Sanjeev Kumar (49yo)

    Director

    • Tenure: 0.08yrs
    • Compensation: ₹24.00k
  • Milind Torawane (47yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: ₹55.50k
  • Piyush Sinha (59yo)

    Non Executive Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹40.50k
  • Vishal Gupta (36yo)

    Non Executive Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹40.50k

Company Information

Gujarat Gas Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gujarat Gas Limited
  • Ticker: GUJGAS
  • Exchange: NSEI
  • Founded: 2012
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: ₹117.852b
  • Shares outstanding: 688.39m
  • Website: https://www.gujaratgas.com

Number of Employees


Location

  • Gujarat Gas Limited
  • 2, Shanti Sadan Society
  • Near Parimal Garden
  • Ahmedabad
  • Gujarat
  • 380006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539336BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2015
GUJGASNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2015
539336BSE (Mumbai Stock Exchange)INR2 (POST SUBD)ININRJan 2019
GUJGASNSEI (National Stock Exchange of India)INR2 (POST SUBD)ININRJan 2019

Biography

Gujarat Gas Limited engages in the distribution of city natural gas in India. The company operates a network of 23,200 kilometers of gas pipeline and approximately 344 CNG stations. It supplies natural gas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:52
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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