NSEI:GUJGASLTD

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 17.42% per year

Risk Analysis

No risks detected for GUJGASLTD from our risk checks.


Snowflake Analysis

Reasonable growth potential with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GUJGASLTD is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GUJGASLTD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.7%

GUJGASLTD

0.1%

IN Gas Utilities

-0.4%

IN Market


1 Year Return

39.1%

GUJGASLTD

23.5%

IN Gas Utilities

15.9%

IN Market

Return vs Industry: GUJGASLTD exceeded the Indian Gas Utilities industry which returned 26.8% over the past year.

Return vs Market: GUJGASLTD exceeded the Indian Market which returned 17.7% over the past year.


Shareholder returns

GUJGASLTDIndustryMarket
7 Day-3.7%0.1%-0.4%
30 Day4.1%6.2%5.0%
90 Day28.7%53.2%24.4%
1 Year39.7%39.1%26.8%23.5%18.1%15.9%
3 Year120.0%116.6%17.2%10.1%9.7%4.4%
5 Year247.8%239.8%59.6%41.6%82.3%68.5%

Long-Term 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 compared to its fair value and its price relative to the market?

26.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GUJGASLTD (₹375.55) is trading above our estimate of fair value (₹174.03)

Significantly Below Fair Value: GUJGASLTD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GUJGASLTD is poor value based on its PE Ratio (26.3x) compared to the IN Gas Utilities industry average (23.3x).

PE vs Market: GUJGASLTD is poor value based on its PE Ratio (26.3x) compared to the Indian market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: GUJGASLTD is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: GUJGASLTD is overvalued based on its PB Ratio (6.9x) compared to the IN Gas Utilities industry average (5.3x).


Next Steps

Future Growth

How is Gujarat Gas forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUJGASLTD's forecast earnings growth (17.4% per year) is above the savings rate (7%).

Earnings vs Market: GUJGASLTD's earnings (17.4% per year) are forecast to grow slower than the Indian market (25.6% per year).

High Growth Earnings: GUJGASLTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: GUJGASLTD's revenue (20.6% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: GUJGASLTD's revenue (20.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GUJGASLTD's Return on Equity is forecast to be high in 3 years time (25.9%)


Next Steps

Past Performance

How has Gujarat Gas performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GUJGASLTD has high quality earnings.

Growing Profit Margin: GUJGASLTD's current net profit margins (11.2%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: GUJGASLTD's earnings have grown significantly by 33.8% per year over the past 5 years.

Accelerating Growth: GUJGASLTD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GUJGASLTD had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the Gas Utilities industry average (-3.5%).


Return on Equity

High ROE: GUJGASLTD's Return on Equity (26.1%) is considered high.


Next Steps

Financial Health

How is Gujarat Gas's financial position?


Financial Position Analysis

Short Term Liabilities: GUJGASLTD's short term assets (₹15.5B) do not cover its short term liabilities (₹20.3B).

Long Term Liabilities: GUJGASLTD's short term assets (₹15.5B) do not cover its long term liabilities (₹23.6B).


Debt to Equity History and Analysis

Debt Level: GUJGASLTD's debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: GUJGASLTD's debt to equity ratio has reduced from 158% to 37.2% over the past 5 years.

Debt Coverage: GUJGASLTD's debt is well covered by operating cash flow (114.1%).

Interest Coverage: GUJGASLTD's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GUJGASLTD's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: GUJGASLTD's dividend (0.33%) is low compared to the top 25% of dividend payers in the Indian market (1.8%).


Stability and Growth of Payments

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

Growing Dividend: GUJGASLTD's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.8%), GUJGASLTD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GUJGASLTD's dividends in 3 years are forecast to be well covered by earnings (16.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Sanjeev Kumar (50 yo)

1.08yrs

Tenure

₹97,500

Compensation

Mr. Sanjeev Kumar, I.A.S., has been Managing Director of Gujarat Gas Limited since December 18, 2019. He served as Managing Director of Gujarat State Petroleum Corporation Limited until December 18, 2019. ...


Leadership Team

NamePositionTenureCompensationOwnership
Sanjeev Kumar
MD & Director1.08yrs₹97.50kno data
Nitesh Bhandari
Chief Financial Officer5.33yrs₹9.49mno data
Sandeep Dave
Group GM of Secretarial & Legal0.83yr₹3.07mno data
Ragunath Kulai
Senior Vice President of Technical Services3.25yrsno datano data
Himanshu Upadhyay
Senior Vice President of HR & Admin3.25yrsno datano data
Maqsood Shaikh
SVP of Commercial and Mktg3.75yrsno datano data
Dipen Chauhan
Senior Vice President of Operations - 13.75yrsno datano data
Manish Goswami
Senior Vice President of Ankleshwar for Operations - 1no datano datano data
Dinesh Mehta
Senior Vice President of Surat for Operations - 1no datano datano data
K. S. Prasad
Senior Vice President of Operations - 23.75yrsno datano data

3.5yrs

Average Tenure

48yo

Average Age

Experienced Management: GUJGASLTD's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjeev Kumar
MD & Director1.08yrs₹97.50kno data
Manjula Subramaniam
Additional Non-Executive Independent Woman Director0.42yrno datano data
Jal Patel
Non Executive Independent Director5.75yrs₹187.50kno data
Anil Mukim
Chairman of the Board0.75yrno datano data
Krishna Chatterjee
Non Executive Independent Director5.75yrs₹309.00kno data
Milind Torawane
Non-Executive Director3.42yrs₹82.50kno data
Piyush Sinha
Non Executive Independent Director3.42yrs₹88.50kno data
Vishal Gupta
Non Executive Independent Director3.42yrs₹141.00kno data
Sunaina Tomar
Non-Executive Director1yr₹21.00kno data

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: GUJGASLTD's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Gujarat Gas Limited
  • Ticker: GUJGASLTD
  • Exchange: NSEI
  • Founded: 2012
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: ₹258.525b
  • 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
GUJGASLTDNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2015

Biography

Gujarat Gas Limited engages in the distribution of city natural gas in India. The company operates a network of approximately 24,400 kilometers of gas pipeline and 403 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 Analysis2021/01/15 12:13
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.