Motilal Oswal: Gujarat Gas - LPG And Gas Prices On A See-Saw; Margins To Remain Stable

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Gujarat Gas Ltd. has taken a price cut of Rs 2.5/ standard cubic meter on piped natural gas Industrial at Morbi, as per our interaction with the company.Therefore, gas price realization now stands at Rs 24.5/standard cubic meter, bringing the economies of gas at par with the current low liquefied petroleum gas (LPG) prices.According to our observation of the recent movement in prices, LPG prices fell to a record low and subsequently revived off the trough (similar to Brent prices), however, it is still down 35% YoY.Historically, LPG prices are usually cheap during the monsoon season while prices spike during winters, driven by higher heating demand.Industrials account for more 75% of the sales volume for Gujarat Gas – Morbi constitutes approximately 75% of the total industrial volume.Thus, it is an uphill task for Gujarat Gas to maintain healthy economics of gas with LPG for its industrial consumers..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Gujarat Gas - LPG And Gas Prices On A See-Saw; Margins To Remain Stable

Motilal Oswal: Gujarat Gas - LPG and Gas prices on a see-saw; Margins to remain stable

Choose a plan