Share of Gujarat Gas Ltd is currently trading at around Rs.400/-Existing as well as Prospective Investors are asking for Gujarat Gas Share Price Targets for 2025,2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the Gujarat Gas Share Price Targets for 2025,2030,2035 and 2040
Discussion & Analysis of Business & Financial performance with future business prospects Gujarat Gas Ltd:
Gujarat Gas Limited (GGL), a leading city gas distribution company in India, has demonstrated a mixed financial performance in recent quarters, reflecting both growth opportunities and market challenges.
Recent Financial Performance:
- Q1 FY25: The company reported a net profit of ₹330 crore, marking a substantial 53% increase from ₹215 crore in the same quarter of the previous year. Revenue from operations rose by 18% to ₹4,615 crore, up from ₹3,924 crore year-on-year. This growth was primarily driven by robust volume increases, particularly in the Compressed Natural Gas (CNG) segment
- Q2 FY25: GGL’s revenue stood at ₹3,949 crore, a slight decrease from ₹3,991 crore in the corresponding quarter of the previous year. However, the company achieved a 3% increase in Profit After Tax (PAT), reaching ₹415 crore compared to ₹401 crore previously. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a 5% rise, amounting to ₹553 crore. Notably, CNG sales volumes experienced a 12% year-on-year growth, reaching 2.93 million metric standard cubic meters per day.
- Q3 FY25: The company reported a net profit of ₹221 crore, with revenue rising 5.7% year-on-year to ₹4,152.9 crore. Despite the modest growth in revenue, the company’s EBITDA margins contracted to 9.2% from 10.2% a year earlier, reflecting higher costs.
- Operational Highlights:
GGL has been proactive in expanding its infrastructure and customer base:
- Infrastructure Expansion: The company invested approximately ₹130 crore in infrastructure during Q2 FY25, totaling ₹330 crore for the first half of the fiscal year. This investment facilitated the addition of nine new CNG stations, enhancing accessibility and supporting future growth
- Customer Acquisition: During Q1 FY25, GGL added over 37,400 new domestic customers. In Q2 FY25, the company continued this trend by adding 38,500 new domestic connections, reflecting its commitment to expanding its customer base. Challenges:
Despite these positive developments, GGL faced certain challenges:
- Industrial Segment Decline: The industrial segment experienced a decline in sales volume from 5.86 mmscmd in the previous year to 4.91 mmscmd in Q2 FY25, attributed to geopolitical factors and increased LNG prices.
- LNG Price Volatility: The company faced a significant increase in LNG prices, impacting industrial pricing and margins.
- Future Prospects:
GGL remains optimistic about its growth trajectory: CNG Segment Growth: The company anticipates continued strong momentum in the CNG category, supported by favorable government policies that encourage the adoption of cleaner fuels
Strategic Investments: GGL plans to expand its distribution network to cover more cities and rural areas, ensuring broader access to natural gas. The company also aims to invest in advanced technologies for better infrastructure management and efficiency in gas distribution.
Sustainability Initiatives: The company is focusing on sustainable practices, including reducing carbon emissions and increasing the use of renewable energy sources.
In conclusion, Gujarat Gas Limited has showcased resilience and adaptability in a dynamic market environment. While challenges persist, the company’s strategic focus on infrastructure expansion, customer acquisition, and alignment with governmental clean energy initiatives positions it well for sustained growth in the future.
Share Price Targets:
Gujarat Gas Share Price Target 2025
Based on the above discussion and analysis, the share price of Gujarat Gas Ltd is likely to touch the level of around Rs.450-475 in 2025
Gujarat Gas Share Price Target 2030
Based on the above discussion and analysis, the share price of Gujarat Gas Ltd is likely to touch the level of around Rs.750-875 in 2030
Gujarat Gas Share Price Target 2035
Based on the above discussion and analysis, the share price of Gujarat Gas Ltd is likely to touch the level of around Rs.1350-1475 in 2035
Gujarat Gas Share Price Target 2040
Based on the above discussion and analysis, the share price of Gujarat Gas Ltd is likely to touch the level of around Rs.2250-2575 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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