Gujarat Gas - Long Term Stock Pick

Posted by admin in Companies, Mid Term Picks on Apr 26th, 2010 | no responses

Experts’ Opinion about Gujarat Gas

Gujarat Gas has got 0.6 mmscmd of Gas allocation from KG-D6 gas field in the first quarter of 2010-11. The gas supply (sourcing) is expected to start from this quarter.
Company’s ABITA margins can reach 19-20%. Gross Margins may remain at Rs 4/scm levels as per company’s expectations.
Currently stock is trading at 13.9 P/E per 2010-11 EPS estiates. Current EPS is at Rs 20.1 (FY 2009-2010).

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