Prabhudas Lilladher Recommends 'Accumulate' on Gujarat Gas; Sets Rs 422 Target
Business
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Moneycontrol•22-01-2026, 13:10
Prabhudas Lilladher Recommends 'Accumulate' on Gujarat Gas; Sets Rs 422 Target
- •Prabhudas Lilladher upgrades Gujarat Gas rating to 'Accumulate' from 'HOLD' after recent stock price correction.
- •Q3FY26 volumes were 8.4mmscmd, slightly below estimates due to lower Morbi volumes.
- •EBITDA/scm improved to Rs5.8/scm in Q3FY26, driven by lower gas costs and other expenses.
- •Management cut PNG prices for Morbi ceramic industry by Rs4.5/scm to counter propane competition, effective Jan'26.
- •Morbi volumes are projected to recover significantly, reaching 3.0–3.5mmscmd by Feb-Mar’26.
Why It Matters: Prabhudas Lilladher recommends accumulating Gujarat Gas, citing improved EBITDA/scm and expected volume recovery.
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