PSU Gas Stock To Recommend Dividend For FY 23-24, Buy For TP Rs 450, Says Motilal Oswal

Board of Directors of leading public sector undertaking Gujarat State Petronet Ltd (GSPL) will hold meeting on May 8, 2024 to consider financial results and dividend, if any, for the financial year 2023-24. Current market price of Gujarat State Petronet Ltd share on BSE is Rs 369.65 per share with intraday gain of 0.82%. The company's market capitalisation is Rs 20,856.07 crore. GSPL shares soared 3.99% in last 1-week and gained over 41% in last 1-year.

Meanwhile, brokerage firm Motilal Oswal has recommended buy call to Gujarat State Petronet Ltd share with target price of Rs 450. If you buy GSPL shares at current market price of Rs 369.65 apiece, you can fetch potential return of 21.74%.

Gujarat State Petronet To Consider Results, Dividend On May 8: As per the regulatory filing of the company dated April 4, 2024, "This is to inform you that the Meeting of the Board of Directors of the Company is scheduled to be held on 8th May, 2024, inter-alia to consider the Audited Financial Results (Standalone I Consolidated) of ttre Company for the Quarter and Financial Year ended 31't March, 2024.It is further informed that the Dividend, if any, for the FY 2023-24 may be considered and recommended at the aforesaid Board Meeting of the Company."

GSPL Dividend History: Gujarat State Petronet Ltd announced 18 dividends since September 15, 2006. In last 12 months, Gujarat State Petronet declared an equity dividend of Rs 5.00 per share. At the current share price of Rs 369.65, Gujarat State Petronet Ltd offers a dividend yield of 1.35%.

Valuation of Gujarat State Petronet: According to Motilal Oswal, "The available LNG capacity in Gujarat is expected to grow by 55% to 42.5mmtpa over the next 2-3 years. Most of this volume is likely to flow through GUJS's network. We believe the company could post a 13% CAGR in transmission volumes over FY23-FY26."

We expect GUJS's volumes to jump to ~37mmscmd in FY26 as the company is also a beneficiary: a) the upcoming LNG terminals in Gujarat, b) improved demand owing to the focus on reducing industrial pollution - Gujarat has five geographical areas (GAs) identified as severely/critically polluted, and c) the commissioning of Phase-II of the Mehsana-Bhatinda pipeline, added Motilal Oswal.

Gujarat State Petronet Shares Performance & Return: The 52-week high price of Gujarat State Petronet shares on BSE is Rs 407.30 per share and 52-week low price is Rs 254.75 per share, respectively. Gujarat State Petronet shares declined marginally by 0.66%, soared 16% year-to-date, jumped 35% in last 2-years, and gave return of 110% in last 5-years. In last 10-years, Gujarat State Petronet stock zoomed 459%.

About: GSPL, a GSPC Group company is a pioneer in developing energy transportation infrastructure and connecting natural gas supply sources including LNG terminals to growing markets. GSPL is continuously expanding its pipeline network currently in Gujarat to reach the demand centres by laying gas pipeline network. The company has developed requisite expertise and confidence with proven project management competencies, according to its Linkedin page.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.