Motilal Oswal: Gujarat State Petronet Q2 Update - A Decade Old, A Decade New: A Huge Opportunity

Motilal Oswal: Gujarat State Petronet Q2 Update - A Decade Old, A Decade New: A Huge Opportunity

Petroleum Pipes sit on top of the well deck of a gas condensate platform in U.K. (Photographer: Simon Dawson/Bloomberg)

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Motilal Oswal Report

Gujarat State Petronet Ltd. has installed an additional compressor, which facilitated pipeline capacity expansion by ~10%, thus taking total pipeline capacity to ~46 Million Metric Standard Cubic Meter Per Day.

The company believes that volumes would settle down a bit, as festive demand is behind us, it could still average ~42 mmscmd in Q3 FY21.

Over the last five years, Ebitda grew ~11% CAGR, in line with volumes CAGR of ~10% (to ~38 msmcmd in FY20 from 23 mmscmd in FY15) despite average implied tariff of ~Rs 1,215 lower than ~Rs 1,240 in 2QFY21.

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Motilal Oswal- Gujarat State Petronet Q2 FY21 Update.pdf
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