Gujarat Gas Limited (GGL) is India’s largest City Gas Distribution (CGD) Company, serving millions of households, commercial, and industrial customers across multiple states. Notable for its extensive network and pioneering initiatives like blending green hydrogen with Piped Natural Gas, GGL has earned recognition for its excellence in the energy sector. With a focus on quality, safety, and environmental standards, GGL holds ISO certifications, showcasing its commitment to sustainable practices. Through innovation and service excellence, GGL remains at the forefront of driving the transformation of India’s natural gas landscape.
About Gujarat Gas
Gujarat Gas Limited is a government company, recognized under the Companies Act 2013. Formerly known as GSPC Distribution Networks Limited (GDNL), Gujarat Gas plays a vital role in India’s natural gas sector. Its primary focus is on delivering natural gas from its sources to where it’s needed most, directly to end customers.
Gujarat Gas serves its customers with both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) connections. These services are available for domestic, industrial, commercial, and non-commercial users across South and Central Gujarat and Saurashtra.
Gujarat Gas Limited stands as India’s foremost City Gas Distribution (CGD) player, with 27 CGD licenses across 43 districts in six states and one Union Territory.
Gujarat Gas’s wide-reaching network caters to over 15.5 lakh households, 13,000 commercial customers, 559 CNG stations, and 4,000 industrial units, and boasts an impressive 30,000 kilometers of natural gas pipeline.
With its licensed area covering 1,69,700 square kilometers, Gujarat Gas holds the largest market share in the CGD industry. This includes 24% of domestic connections, 41% of commercial connections, 18% of CNG stations, and 36% of industrial connections.
Looking ahead, Gujarat Gas is all set to expand further into PNG for domestic and commercial usage, as well as into the transport sector with CNG. This strategic move aims to ensure access to cleaner energy options and supports GGL’s sustainable growth goals.
Gujarat Gas Q4 FY 2024 Key Points and Summary
- Gujarat Gas Limited (GGL) reported a noteworthy 11% increase in net profit for the fourth quarter, reaching Rs 409.54 crore compared to Rs 369.22 crore in the same period last year.
- Sequentially, the profit surged by an impressive 85.9% from Rs 220.34 crore in the preceding quarter, indicating strong momentum.
- The company’s revenue from operations also saw a significant uptick, rising by 5.4% to Rs 4,293.86 crore from Rs 4,073.82 crore year-on-year.
- GGL’s Ebitda for the quarter stood at Rs 591 crore, reflecting robust operational performance, while achieving a net margin of 14.3%, showcasing efficient cost management.
- Additionally, Gujarat Gas declared a dividend of Rs 5.66 per equity share, demonstrating its commitment to enhancing shareholder value.
- The appointment of Rajesh Sivadasan as the new Chief Financial Officer brings valuable experience, with 26 years in the energy industry and a specialization in finance, contributing to the company’s continued growth and financial stewardship.
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | |
| Promoters + | 60.89% | 60.89% | 60.89% | 60.89% | 60.89% |
| FIIs + | 4.67% | 4.47% | 3.80% | 3.34% | 3.72% |
| DIIs + | 13.28% | 13.28% | 13.09% | 13.98% | 15.04% |
| Government + | 7.01% | 7.01% | 7.01% | 7.01% | 7.01% |
| Public + | 14.15% | 14.34% | 15.20% | 14.78% | 13.32% |
| No. of Shareholders | 1,80,747 | 1,84,281 | 2,11,378 | 2,13,432 | 1,78,664 |
- The promoters’ holding in the company has remained stable at 60.89% throughout the observed period from March 2023 to March 2024, indicating their consistent control and long-term commitment to the company.
- Foreign Institutional Investors (FIIs) held a minor stake, ranging from 3.34% to 4.67% during the period, reflecting limited foreign investment interest in the company.
- Domestic Institutional Investors (DIIs) maintained a relatively steady holding between 13.09% and 15.04%, signifying consistent interest from domestic institutional investors.
- Government holding remained constant at 7.01% across all quarters, indicating a consistent level of government ownership or involvement in the company.
- The public holding witnessed slight fluctuations, ranging from 13.32% to 15.20% over the observed period, reflecting changes in retail investor sentiment and participation.
- The total number of shareholders increased from 1,80,747 in March 2023 to 2,13,432 in December 2023 before slightly decreasing to 1,78,664 in March 2024, indicating fluctuations in investor base and possibly some churn in shareholder composition.
| When | Maximum Price | Minimum Price |
| May 2024 | 549.60 | 477.92 |
| June 2024 | 569.39 | 495.12 |
| July 2024 | 563.70 | 490.17 |
| August 2024 | 586.24 | 509.78 |
| September 2024 | 609.69 | 530.17 |
| October 2024 | 597.74 | 519.77 |
| November 2024 | 621.65 | 540.56 |
| December 2024 | 627.86 | 545.97 |
In May 2024, Gujarat Gas is expected to witness a maximum price of 549.60 and a minimum price of 477.92 per share, indicating potential fluctuations in the stock’s value. As the months progress, the company’s stock is anticipated to experience fluctuations, with December 2024 projecting a maximum price of 627.86 and a minimum price of 545.97 per share.
| When | Maximum Price | Minimum Price |
| January 2025 | 634.14 | 487.80 |
| February 2025 | 640.55 | 492.73 |
| March 2025 | 654.00 | 503.08 |
| April 2025 | 647.53 | 498.10 |
| May 2025 | 628.67 | 483.59 |
| June 2025 | 656.96 | 505.35 |
| July 2025 | 644.07 | 495.44 |
| August 2025 | 663.99 | 510.76 |
| September 2025 | 671.96 | 516.89 |
| October 2025 | 689.43 | 530.33 |
| November 2025 | 706.67 | 543.59 |
| December 2025 | 738.47 | 568.05 |
As we step into January 2025, Gujarat Gas is anticipated to witness a maximum price of 634.14 and a minimum price of 487.80 per share, setting the tone for the year ahead. Throughout the months, the stock’s value is expected to fluctuate, with December 2025 projecting a maximum price of 738.47 and a minimum price of 568.05 per share, reflecting the dynamic nature of the market and investor sentiment. Investors will closely monitor Gujarat Gas’s performance, responding to changing economic conditions and industry trends.
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹870.51 | ₹570.47 |
| 2027 | ₹1,050.87 | ₹676.32 |
| 2028 | ₹1,281.16 | ₹824.53 |
| 2029 | ₹1,561.91 | ₹1,005.21 |
| 2030 | ₹1,904.18 | ₹1,225.50 |
In 2026, Gujarat Gas’s shares are projected to reach a maximum price of ₹870.51 and a minimum price of ₹570.47. Moving into 2027, the prices are expected to climb, with projections ranging from ₹1,050.87 to ₹676.32. By 2028, Gujarat Gas’s shares may further escalate, reaching a maximum of ₹1,281.16 and a minimum of ₹824.53. In 2029, the upward trend continues, with prices predicted to fluctuate between ₹1,561.91 and ₹1,005.21. Finally, by 2030, Gujarat Gas’s shares are forecasted to peak at a maximum price of ₹1,904.18 and maintain a minimum of ₹1,225.50.
Gujarat Gas Financial Condition (Last 5 Years)
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 10,300 | 9,866 | 16,456 | 16,759 | 15,690 |
| Expenses + | 8,652 | 7,761 | 14,354 | 14,338 | 13,814 |
| Operating Profit | 1,649 | 2,105 | 2,103 | 2,422 | 1,876 |
| OPM % | 16% | 21% | 13% | 14% | 12% |
| Other Income + | 82 | 68 | 77 | 98 | 163 |
| Interest | 205 | 134 | 82 | 67 | 29 |
| Depreciation | 318 | 344 | 385 | 428 | 474 |
| Profit before tax | 1,208 | 1,695 | 1,713 | 2,025 | 1,536 |
| Tax % | 1% | 25% | 25% | 25% | 26% |
| Net Profit + | 1,193 | 1,268 | 1,286 | 1,525 | 1,143 |
| EPS in Rs | 17.33 | 18.42 | 18.68 | 22.16 | 16.6 |
| Dividend Payout % | 7% | 11% | 11% | 30% | 34% |
- Sales Growth: The company experienced fluctuations in sales over the observed period, peaking at ₹16,759 crores in March 2023 and slightly decreasing to ₹15,690 crores in March 2024, indicating some volatility in revenue generation.
- Expense Management: Despite varying sales figures, the company effectively managed its expenses relative to revenue growth. Expenses decreased from ₹14,354 crores in March 2022 to ₹13,814 crores in March 2024, showing prudent cost management strategies.
- Operating Profit: The company’s operating profit exhibited fluctuations, reaching its peak at ₹2,422 crores in March 2023 before declining to ₹1,876 crores in March 2024, reflecting changes in operational efficiency and market conditions.
- Other Income and Net Profit: Other income increased steadily from ₹82 crores in March 2020 to ₹163 crores in March 2024, contributing to overall profitability. Net profit showed fluctuations, reaching its highest at ₹1,525 crores in March 2023 before decreasing to ₹1,143 crores in March 2024, indicating some variability in bottom-line performance.
- Dividend Payout: The dividend payout percentage increased significantly from 7% in March 2020 to 34% in March 2024, suggesting a more aggressive dividend distribution policy by the company despite fluctuations in profitability.
FAQs
What Is the Market Value of Gujarat Gas?
The market capitalization (Market Cap) of Gujarat Gas as of 7th May 2024 is ₹37,294 Crores.
As of May 7th, 2024, the current share price of Gujarat Gas is ₹542.
What Is the Stock PE Ratio of Gujarat Gas?
The stock P/E ratio for Gujarat Gas is 33.9.
The Share Price target of Gujarat Gas is expected to reach ₹1,904.18 by the end of 2030.
Also, check other Gas Companies Share Price Targets:
Should One Invest In Gujarat Gas?
In conclusion, Gujarat Gas Limited stands as a stalwart in India’s natural gas sector, leading the way with its extensive City Gas Distribution network and innovative initiatives like blending green hydrogen with Piped Natural Gas. The company’s recent fourth-quarter results underscore its robust financial performance, with a noteworthy 11% increase in net profit and a significant uptick in revenue from operations. With a steadfast commitment to quality, safety, and sustainability, Gujarat Gas has earned recognition for its excellence in serving millions of households, commercial, and industrial customers across multiple states. As the company continues to expand its presence and invest in new technologies, investors can anticipate sustained growth and value creation in the years ahead.
Gujarat Gas exhibits strong financial health, consistent growth, and a favorable dividend payout. Considering the positive indicators, it appears to be an attractive investment opportunity for those seeking stability and dividends. However, like all investments, it’s important to conduct thorough research and consider personal financial goals and risk tolerance before making an investment decision.
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