Gujarat State Petronet shares gain after Mirae Asset MF raises its stake

Gujarat State Petronet shares gained over 1 percent in early trade on November 23 after Mirae Asset Mutual Fund hiked its stake in the company to 9.15 percent.

Mirae Asset Mutual Fund increased its equity shareholding in the natural gas distribution company by 0.13 percent through an open market transaction on November 21 to 9.15 percent from 9.02 percent earlier.

As of 10.05am, shares of Gujarat State Petronet were trading at Rs 275.95 on the BSE, higher by 0.9 percent from the previous session’s closing price.

The company’s Q2 performance during this period showed remarkable strength, with a consolidated profit of Rs 590.4 crore, with a 36 percent growth on a sequential basis. Gujarat State Petronet also posted an upturn in its revenue from operations. The revenue reached Rs 4,265.2 crore for the quarter, marking a sequential increase of 3.8 percent.

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Brokerage firm Emkay Global Financial has expressed a positive outlook on Gujarat State Petronet, issuing a ‘buy’ recommendation for the stock and setting a target price of Rs 340.

“Growth in transmission volumes was primarily seen across the City Gas Distribution and power sector. With decline in gas prices, anticipated increase in LNG capacities and strong demand prospects, we remain optimistic on the long term volume growth,” said Prabhudas Lilladhar, issuing a target price of Rs 327.

Over one year, the company has given investors returns of 15.8 percent as compared to the benchmark Nifty 50, which has risen 8.6 percent during the same time-period.

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