My Investment Idea No. 1: Gujarat Gas Limited (GGL)

Long Term Investment Idea No. 1

Gujarat Gas Limited (GGL): 

1.   Price Rs 230..

2.  Gujarat Gas Limited (GGL) is India's largest City Gas Distribution Player with its presence spread across 23 Districts in the State of Gujarat, Union Territory of Data & Nagar Haveli and Thane Geographical Area (GA) which includes Palghar District of Maharashtra..

3.   In 10th CGD bidding round announced by PNGRB, the company has won 6 GAs comprising of 17 cities in the state of Punjab, Haryana, M.P., and Rajasthan making GGL a pan India Company..

4.   GGL has India's largest consumer base in Residential, Commercial and Industrial segments.

5.  GGL has around 23,200 Kms of gas pipeline network. It has around 344 CNG stations and distributes approximately 8.5 mmdcmd of natural gas to about 13,55,000 households, approximately 2 lakh CNG Vehicles serving per day and to over 3540 Industrial Customers..

Now RESULTS🙂🙂

6.    Face Value Rs 2
7.    Equity 137.68 Cr

                Net Sales (NS) /Net Profit (NP) / Earning Per Share (EPS)

Yearly

8.    2016: Rs 6105 Cr Approx / Rs 155.87 Cr / Rs 2.26
9.    2017: Rs 5092 Cr Approx/  Rs 220.59 Cr/  Rs 3.20       
       Yearly YoY Growth in NP = 41.52%
10.  2018: Rs 6174 Cr Approx/  Rs 292.45 Cr/  Rs 4.25       
       Yearly YoY Growth in NP = 32.57%
11.  2019: Rs 7754 Cr Approx/  Rs 418.45 Cr/  Rs 6.08       
       Yearly YoY Growth in NP = 43.08%

Quarterly

12.   Jun 18: Rs 1765 Cr Approx/  Rs 122.12 Cr/   Rs 1.77
13.   Jun 19: Rs 2614 Cr Approx/  Rs 234.04 Cr/   Rs 3.4     
       Quarterly YoY Growth in NP = 91.64%
14.   Sep 18: Rs 1964 Cr Approx/ Rs 41.00 Cr/      Rs 0.59
15.   Sep 19: Rs 2512 Cr Approx/ Rs 517.03 Cr/    Rs 7.51   
        Quarterly YoY Growth in NP = 1161.04%

Half Yearly

16.   HY 2019:Rs 3730 Cr Approx/ Rs 163.10 Cr/   Rs2.36
17.   HY 2020:Rs 5126 Cr Approx/ Rs 751.07 Cr/ Rs 10.91 
        Half Yearly YoY Growth in NP = 360.49%                   

Analysis:

18.   FY 2019 full year profit Rs 418.45 Crores Vs Rs 751.07 Crores for only 6 months of FY 2020....Now u can analyse on your own😊🤣

19.   My target: At least double in 18-24 months..(I reserve the Right to be Wrong)

20.   Like MGL & IGL, GGL is also a beneficiary of reduction in Gas Prices..

21.   Happy Investing....I will wait for some meaningful correction/ Profit Booking before taking a plunge into GGL....Let's see how long do we have to wait......

22.   In my opinion 215-220 would be the region to buy it for long term....

23.   Other strategy which I could follow is to buy 25% now and rest after correction, if it happens. As far as I am concerned, I am very comfortable buying GGL at these prices for a horizon of more than one year.

24.   Most of the information provided above has been taken from www.moneycontrol.com and which may or may not be correct. Therefore, do your own research before investing in this stock.

CAUTION

The Post written above is not be taken as a "Buy Recommendation" by the author for Gujarat Gas Limited (GGL) and no one should take a decision to buy this stock based on the information given in this blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult your Financial Advisor before buying this stock (GGL).