Gujarat Gas - Valuations Remain Poised For Further Rerating: Centrum Broking
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Centrum Broking Report
We closed Q3 FY21 with the expectation that Gujarat Gas Ltd. will exit Q4 FY21 with a run rate of 12 million metric standard cubic meter per day versus Q3 FY21 average volumes of 11.4mmscmd – implying a second successive quarter of nearly 20% YoY growth on FY20 levels.
While this pace of growth may be difficult to sustain, we are optimistic on growth prospects even on this base due to multiple drivers.
Continued momentum from Morbi, driven by strong export growth prospects and new units commissioned to cater to the same (Channel checks indicate 60-80 new units being commissioned in the region export have grown at more than 20% while domestic demand is also coming back strongly in last few months).
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