Gujarat Gas Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹41,943.61 crore, a PE ratio of 34.76, a debt-to-equity ratio of 0.02 and a return on equity (ROE) of 15.0%. These figures showcase the company’s strong financial health and low leverage.
Gujarat Gas Ltd Overview
Gujarat Gas Ltd is a leading natural gas distribution company in India, providing piped natural gas (PNG) and compressed natural gas (CNG) to various sectors. It holds a dominant position in the industry with extensive operations across multiple states.
The company has a market capitalization of ₹41,943.61 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The stock is currently trading near its 52-week high of ₹690, well above the 52-week low of ₹397, reflecting strong investor confidence. The all-time high for the stock is ₹787 and the all-time low is ₹90.6.
Gujarat Gas Ltd Financial Results
The company demonstrated stable financial performance from FY 22 to FY 24, with sales fluctuating between ₹15,690 crore and ₹16,759 crore, while EBITDA showed variability, reflecting operational adjustments. The company maintained a solid equity structure and managed its liabilities effectively for growth.
- Revenue Trend: Sales decreased from ₹16,759 crore in FY 23 to ₹15,690 crore in FY 24, following ₹16,456 crore in FY 22, indicating slight fluctuations in revenue performance over the period.
- Equity and Liabilities: The company’s equity remained stable at ₹137.68 crore from FY 22 to FY 24. Total liabilities increased from ₹9,587 crore in FY 22 to ₹11,692 crore in FY 24, indicating controlled financial growth and strategic management.
- Profitability: EBITDA decreased from ₹2,493 crore in FY 23 to ₹1,982 crore in FY 24, following an increase from ₹2,167 crore in FY 22, showing fluctuations in operational profitability during these years.
- Earnings per Share (EPS): EPS decreased from ₹22.20 in FY 23 to ₹16.61 in FY 24, after an increase from ₹18.7 in FY 22, indicating volatility in per-share earnings for shareholders.
- Return on Net Worth (RoNW): RoNW decreased from 21.80% in FY 23 to 14.86% in FY 24, following 22.96% in FY 22, reflecting lower returns on shareholders’ equity over the period.
- Financial Position: The company’s financial position saw a decrease in operating profit from ₹2,392 crore in FY 23 to ₹1,876 crore in FY 24, following ₹2,076 crore in FY 22, demonstrating shifts in profitability despite stable management.
Gujarat Gas Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 15,690 | 16,759 | 16,456 |
| Expenses | 13814 | 14367 | 14380 |
| Operating Profit | 1876 | 2392 | 2076 |
| OPM % | 12 | 14 | 13 |
| Other Income | 161.8 | 101.33 | 78.97 |
| EBITDA | 1982 | 2493 | 2167 |
| Interest | 29 | 40 | 57 |
| Depreciation | 474.3 | 428.26 | 384.91 |
| Profit Before Tax | 1535 | 2025 | 1714 |
| Tax % | 26 | 25 | 25 |
| Net Profit | 1144 | 1528 | 1287 |
| EPS | 16.61 | 22.2 | 18.7 |
| Dividend Payout % | 34.08 | 29.95 | 10.7 |
All values in ₹ Crores.
Gujarat Gas Limited Company Metrics
Gujarat Gas Ltd has a market cap of ₹41,943.61 crore, a book value of ₹112 per share and a face value of ₹2.00. With a low debt of ₹150 crore, EBITDA of ₹1,982 crore, a dividend yield of 0.93% and an asset turnover ratio of 1.39, the company exhibits stable financial performance.
- Market Capitalization: This represents the total market value of Gujarat Gas Ltd’s outstanding shares, amounting to ₹41,943.61 crore, reflecting the company’s size and investor confidence.
- Book Value: Gujarat Gas Ltd has a book value of ₹112 per share, representing the company’s net assets divided by the number of outstanding shares.
- Face Value: The face value of Gujarat Gas Ltd’s shares is ₹2.00, indicating the nominal value per share as stated on the share certificate.
- Asset Turnover: Gujarat Gas Ltd has an asset turnover ratio of 1.39, demonstrating its efficiency in using its assets to generate revenue, indicating good operational performance.
- Total Debt: Gujarat Gas Ltd has a low debt of ₹150 crore, showcasing its strong financial health and minimal financial obligations, contributing to its long-term sustainability.
- EBITDA: Gujarat Gas Ltd’s EBITDA decreased from ₹2,493 crore in FY 23 to ₹1,982 crore in FY 24, following an increase from ₹2,167 crore in FY 22, indicating fluctuations in operational profitability.
- Dividend Yield: Gujarat Gas Ltd has a dividend yield of 0.93%, reflecting the annual dividend income relative to its current share price, providing income to its shareholders.
- Earnings per Share (EPS): Gujarat Gas Ltd has an EPS of ₹18.3, indicating the profit attributed to each outstanding share, reflecting the company’s profitability for its shareholders.
Gujarat Gas Ltd Stock Performance
Gujarat Gas Ltd delivered mixed returns on investment, with 41.6% over 1 year, -0.51% over 3 years and 28.8% over 5 years, demonstrating strong short-term performance and long-term stability for investors.
| Period | Return on Investment (%) |
| 1 Year | 41.6 % |
| 3 Years | -0.51 % |
| 5 Years | 28.8 % |
Example: If an investor had invested ₹1,000 in Gujarat Gas Ltd’s stock:
1 year ago, their investment would be worth ₹1,416.
3 years ago, their investment would have decreased slightly to ₹995.
5 years ago, their investment would have increased to approximately ₹1,288.
This showcases solid long-term growth potential despite short-term fluctuations.
Gujarat Gas Ltd Peer Comparison
Gujarat Gas Ltd, with a P/E of 34.47 and ROE of 15.03%, competes with GAIL (P/E 13.16, ROE 13.97%), Adani Total Gas (P/E 128.02, ROE 20.46%) and Indraprastha Gas (P/E 22.62, ROE 21.76%), showcasing moderate returns and strong growth potential.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| GAIL (India) | 224.95 | 147906.76 | 13.16 | 13.97 | 17.17 | 83.2 | 14.66 | 2.43 |
| Adani Total Gas | 802.05 | 88210.23 | 128.02 | 20.46 | 6.27 | 28.21 | 21.2 | 0.03 |
| Petronet LNG | 330 | 49500 | 12.75 | 22.19 | 25.92 | 37.23 | 26.41 | 2.97 |
| Gujarat Gas | 609.7 | 41971.13 | 34.47 | 15.03 | 18.27 | 41.63 | 20.51 | 0.93 |
| Indraprastha Gas | 551.65 | 38615.54 | 22.62 | 21.76 | 24.44 | 20.91 | 28.76 | 1.63 |
| Guj.St.Petronet | 405.15 | 22859.02 | 13.72 | 16.06 | 30.12 | 41.78 | 21.46 | 1.21 |
| Mahanagar Gas | 1963.2 | 19392.09 | 16.1 | 27.79 | 122.01 | 87.33 | 36.6 | 1.52 |
Gujarat Gas Shareholding Pattern
In FY 2024, Gujarat Gas Ltd’s promoter holding remained steady at 60.89%, while FII dropped to 3.72%. DII increased to 15.04% and retail & others decreased to 20.33%, reflecting shifts in institutional and retail investor participation since FY 2022.
| All values in % | FY 2024 | FY 2023 | FY 2022 |
| Promoters | 60.89 | 60.89 | 60.89 |
| FII | 3.72 | 4.67 | 5.98 |
| DII | 15.04 | 13.28 | 9.53 |
| Retail & others | 20.33 | 21.16 | 23.6 |
Gujarat Gas Limited History
Gujarat Gas Limited was established in 1980 as a joint venture between British Gas and the Gujarat government. It initially focused on distributing natural gas to industrial users in Gujarat, laying the foundation for becoming one of India’s largest natural gas distribution companies.
In 2013, Gujarat State Petronet Ltd (GSPL) acquired a majority stake from British Gas, further expanding its reach. The acquisition marked a pivotal point in the company’s growth, allowing it to enhance its pipeline network and increase its customer base significantly across multiple states.
Gujarat Gas diversified its customer base by supplying piped natural gas (PNG) to residential, commercial and industrial sectors, as well as compressed natural gas (CNG) for automotive use. Its extensive pipeline network covers major urban and rural regions, enabling wide access to clean energy.
Over the years, Gujarat Gas Ltd has consistently expanded its operations and market leadership, driven by innovation and strong government support. It continues to play a crucial role in India’s energy transition towards cleaner fuels, providing efficient and reliable natural gas distribution.
How To Invest In Gujarat Gas Ltd Share?
Investing in Gujarat Gas Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Gujarat Gas Ltd shares and place your buy order.
Gujarat Gas Ltd Fundamental Analysis – FAQs
Gujarat Gas Ltd’s fundamental analysis shows a market capitalization of ₹41,943.61 crore, a PE ratio of 34.76, a debt-to-equity ratio of 0.02 and a 15.0% ROE, reflecting strong financial health and minimal leverage.
Gujarat Gas Ltd’s fundamental analysis reveals a market capitalization of ₹41,943.61 crore, reflecting its significant market presence, robust financial stability and investor confidence in the company’s long-term growth and operational efficiency.
Gujarat Gas Ltd is one of India’s leading natural gas distribution companies, supplying piped natural gas (PNG) and compressed natural gas (CNG) to various sectors across Gujarat and neighbouring states.
Gujarat Gas Ltd is primarily owned by Gujarat State Petronet Ltd (GSPL), a government-backed entity, which holds the majority stake in the company, along with institutional and retail investors.
The main shareholders of Gujarat Gas Ltd in FY 2024 include Promoters holding 60.89%, Foreign Institutional Investors (FII) holding 3.72%, Domestic Institutional Investors (DII) at 15.04% and Retail & others holding 20.33%.
Gujarat Gas operates in the natural gas distribution industry, specializing in the supply of piped natural gas (PNG) and compressed natural gas (CNG) for residential, industrial and automotive sectors.
To invest in Gujarat Gas Ltd shares, open a brokerage account with Alice Blue, search for the stock on exchanges like NSE/BSE and place a buy order through your broker or trading platform.
Determining if Gujarat Gas Ltd is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects and industry comparisons. With a PE ratio of 34.76, Gujarat Gas appears relatively high compared to industry standards. However, investors should conduct further analysis to assess its valuation against peers and current market conditions.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
