India's Gujarat Gas falls as analysts flag weak outlook, lofty valuations

Indraprastha Gas

16/02/2024 04:49

** Shares of Gujarat Gas Ltd  GGAS.NS  down 4.1% at 557.2
rupees
    ** At least three analysts downgrade city gas distributor
after quarterly results
    ** Nomura downgrades to "reduce" from "neutral"; highlights
weak volume outlook for key clients in Morbi industrial cluster
and expensive valuation vs peers
    ** GGAS has 12-mth forward P/E of 27.2 vs Indraprastha Gas's
 IGAS.NS  15.2 and Mahanagar Gas's  MGAS.NS  13.1
    ** Stock's current price "factors in all potential upsides
and offers no margin of safety" - Nomura
    ** Emkay downgrades to "sell" from "reduce" while flagging
"volatile margin profile"
    ** Eight analysts rate stock "strong sell" the most in at
least a year - LSEG data
    ** Stock trims YTD gains to 19%


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))