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Fundamentals for Gujarat Gas Limited
Business Operations:
Sector: UtilitiesIndustry: Utilities - Regulated Gas
Gujarat Gas Limited engages in the distribution of natural gas in India. It operates a network of approximately 41,700 kilometers of natural gas pipeline and 820 compressed natural gas (CNG) stations. The company supplies piped natural gas to approximately 21.90 lakh households, approximately 15,470 commercial customers; and approximately 4,410 industrial customers, as well as operates 820 CNG stations. It operates in the states of Gujarat, Maharashtra, Punjab, Madhya Pradesh, Rajasthan, and Haryana; and 1 union territory of Dadra and Nagar Haveli, and Daman and Diu. The company was formerly known as GSPC Distribution Networks Limited and changed its name to Gujarat Gas Limited in May 2015. Gujarat Gas Limited was incorporated in 2012 and is based in Gandhinagar, India. Gujarat Gas Limited operates as a subsidiary of Gujarat State Petronet Limited.
Revenue projections:
With Gujarat Gas Limited's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.
Financial Ratios:
| currentRatio | 1.870000 |
|---|---|
| forwardPE | 11.377206 |
| debtToEquity | 118.640000 |
| earningsGrowth | 0.326000 |
| revenueGrowth | 0.211000 |
| grossMargins | 0.208850 |
| operatingMargins | 0.103380 |
| trailingEps | 0.340000 |
| forwardEps | 30.315000 |
Gujarat Gas Limited's current ratio is 1.87, showing the company's capacity to service its short-term debt through its cash reserves and current assets. This is a positive indicator of liquidity, suggesting Gujarat Gas Limited has no trouble covering its short-term financial obligations.
GUJGASLTD's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
GUJGASLTD's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
Gujarat Gas Limited's positive earnings and revenue growth reflect a strong outlook for the company's business expansion. The company is expected to continue growing, with increasing profitability and sales driving further growth in the near future.
Price projections:
The price of Gujarat Gas Limited has repeatedly been close to the lower limit of price projections. This trend suggests that the stock may be underperforming, raising concerns among investors about future performance.
Recommendation changes over time:
GUJGASLTD has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see GUJGASLTD as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.
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