The shares of the one of leading city gas distribution company rose 2% to its 52-week high price of ₹593 per share on Thursday after the company signed an MoU with Hindustan Petroleum Corporation Limited.
At 2:40 p.m., On Thursday, The shares of Gujarat Gas Ltd(GGL) were quoted at ₹579 a share, down ₹2.15 or 0.37% on the National Stock Exchange, The company has a market value of ₹39,765 crores.
According to the company’s exchange filing, Gujarat Gas Limited (GGL) signed a Memorandum of Understanding (MoU) with Hindustan Petroleum Corporation Limited (HPCL) for the mutual benefit of each company, for the below-mentioned reasons:-
- HPCL provides Liquid Fuels at GGL Outlets.
- HPCL provides Automotive Lubricants, Greases, and Specialties at the GGL outlet.
- Setting up of CNG Facility at HPCL COCO/COMCO Outlets.
- GGL setting up of CNG Mother Facility at HPCL Outlets.
The Gujarat Gas revenue has declined modestly year on year, by 3% from ₹3,976 crore in Q2FY23 to ₹3,845 crore in Q2FY24. Within the stated time range, the net profit has declined by 26% from ₹ 404 crore to ₹296 crore.
Gujarat Gas Ltd shares have gained 20% in the last six months and 23% in a year.
Gujarat Gas Limited (GGL) is engaged in the business of Natural gas that involves the distribution of gas from sources of supply to centers of demand and to end customers.
GGL caters to its customers by providing CNG and PNG connections in domestic, Industrial, Commercial, and Noncommercial segments in the areas of South & Central Gujarat and Saurashtra.
In the September quarter of 2024. The company credit rating was reaffirmed as AAA/Stable (highest rating level), with an increase in rated fund/nonfund Bank facilities from ₹8,550 Crores to ₹12,050 Crores.
The company has commissioned the country’s first pilot project of blending green hydrogen with piped natural gas for domestic customers in collaboration with NTPC Ltd.
The company has allocated capex in the range of ₹1,000-1,200 crore for over the next three years. To expand its business in various geographical areas across India.
Written by Omkar Chitnis
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