Equirus Securities says falling spot liquefied natural gas (LNG) prices will help Gujarat Gas Ltd’s GGAS.NS volumes, margins recover.

Brokerage rates stock “buy” and upgrades EPS estimate for FY25 by 16%, FY26 EPS estimate by 3%.

LNG prices fell 30% in December to $11.2/mmbtu.

GGAS was hit badly when LNG prices soared in 2022, with key clients from industrial hub of Morbi switching from LNG to propane.

With lower prices, GGAS can regain some volume from propane – Equirus.

Gas distributor’s shares closed up 3% at 493.85 rupees, its highest since late May; rose 8% over last 2 sessions.

Equirus’ price target of 537 rupees higher than analysts’ median PT of 468.5 rupees – LSEG data.
Source: Reuters (Reporting by Nandan Mandayam in Bengaluru)