CLSA has reiterated its ‘Underperform’ rating on Gujarat Gas with a target price of ₹385, even after the company delivered a strong Q4FY25 net profit that exceeded expectations. The beat was largely driven by higher-than-estimated other income and stronger unit EBITDA.
Despite the bottom-line surprise, the core operational volume missed estimates, with continued softness in industrial offtake. Total volumes came in at 9.3 mmscmd, while CNG volumes rose 11% YoY, providing some offset to the industrial segment’s drag.
CLSA noted that the strength in core earnings was helped by efficiency improvements and pricing discipline, but maintained a cautious stance given the muted outlook for industrial demand.
Disclaimer: This article is based on the brokerage report by CLSA. It does not constitute investment advice.
