Why Motilal Oswal has a purchase on the inventory of Gujarat State Petronet?
|Current market price||Rs 349|
|Expected price||Rs 500|
Why Motilal Oswal’s purchase in Gujarat State Petronet’s list?
According to Motilal Oswal, over the past month and a half, the quantity of Gujarat State Petronet has reached 38-39mmscmd at 1HFY20, with its high-pressure pipeline (HPP) grid being considered by investors more than the best use charge.
Instead of the brand new tax system (25.17%), the tariff revision has become a matter of great concern, resulting in a huge de-rating of the individual value of the state of Gujarat Petronet, the brokerage noted.
“Considering the gradual increase in volume mp with the addition of new terminal capacity in Gujarat, our sensitivity to 5% / 10% / 20% tariff results from EBITDA CAGR of 15% / 13% from current level of 34 / MMBtu / 8% (16 in the same period). % Volume behind CAGR), “Motilal Oswal mentioned in his report.
According to Motilal Oswal, strict proposals against the use of commercial air pollution will increase the demand for petrol and increase the amount of infection beyond that concern. Not approving GUJS’s proposed capital expenditure, which lowers the tariff by one point, remains the biggest risk, the brokerage noted.
“The company will turn net cash despite an annual capital expenditure plan of Rs 7 lakh crore by the end of FY23E (net / v / sa net debt of Rs 6.6 billion in FY).
Indian markets are closing at an all-time high, a time of caution
Although the Indian markets were closed on brand new documents, perhaps it is time for the markets to be somewhat cautious.
“Equity markets can continue with their strong positive momentum as economic activity is expected to pick up speed as the lockdown system relaxes. The results season is now over with better-than-expected corporate earnings. In the future, we expect corporate earnings to improve further.” Will be because the economy will open up and the tendency to vaccinate will improve.
We estimate the Nifty EPS for FY22E / FY23E at INR 725 / INR862, which means an increase of 35% / 19%, respectively. The market is seeing a shift from the middle to the large cap – a phenomenon that we believe could continue in the near term due to the significant performance of the broader market over the last 18 months. In the sector, we are positive in the IT, metals, cement, BFSI, consumer, auto and healthcare spaces, ”said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services.
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