Gujarat Gas extends gain post PNGRB nod for gas network in Thane

The stock hit a record high of Rs 862, surged 29% in past five trading sessions against 5% fall in the CNX Nifty.

Shares of Gujarat Gas Company were trading higher by 2% at Rs 846, extending its over 20% rally in the past one week on the National Stock Exchange (NSE), after the company received approval from Petroleum and Natural Gas Regulatory Board (PNGRB) to expand its distribution network in Thane and Dadra & Nagar Haveli.

The stock hit a record high of Rs 862 in intra-day trade today and surged 29% in past five trading sessions from Rs 667 on April 13, 2015. The CNX Nifty dipped 5% during the same period.

Meanwhile, Amit Rustagi and Sabri Hazarika, analysts at Antique Stock Broking recommend ‘buy’ rating on the stock with a fair value of Rs 915 per share.

Post merger of Gujarat Gas with GSPC Gas, the combined entity would become India's largest city gas player present across Gujarat, one of the most industrialised states in India, despite having a relatively much lower compressed natural gas (CNG) penetration compared to Delhi/Mumbai, said analyst in a research report dated April 8, 2015.

With spot liquefied natural gas (LNG) prices plummeting to around USD7/mmbtu, industrial and captive power sector demand is expected to strengthen, resulting in improved volumes and margins, added report.

Till 1101 hours, a combined 820,519 shares changed hands on the counter on the NSE and BSE.