Gujarat Gas Ltd
Ticker: GUJGASLTD
Decent
72/100
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Investing Reference
Price
426.05
Market Cap
29328.86
Debt/Equity
0.0177
ROE %
14.166
PB
3.4547
Promoter %
60.893
Pledge %
0.000
1Y Rev Growth %
5.331
5Y Rev Growth %
9.968
NP Margin %
6.876
NP Margin 5Y Avg %
8.743
Trading Reference
1M Return %
-1.296
6M Return %
-1.469
1Y Return %
-27.283
% Away 52W High
39.643
% Away 52W Low
18.265
Daily Volume
530789
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 20/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Gujarat Gas Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If it breaks above the resistance level, there is a potential for upside. However, if it falls below the support, downside risk increases.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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AI Technical Snapshot
Gujarat Gas Ltd is currently in a bearish trend with potential to reverse given recent consolidation patterns.
Trend: Bearish
Supports: 419.65, 441.38, 400
Resistances: 463.3, 475.57, 483.06
MAs: SMA 50, SMA 200
Scenarios:
Bullish: Price breaks above 463.30 with volume, targeting resistance at 475.57 and 483.06. • Bearish: Price fails to hold above 421 and drops below 400, targeting lower supports.
Invalidation: Close above 483.06 invalidates bearish scenarios.
Risk: Current volatility suggests caution. Monitor volume closely for confirmations.
Suggested Plan (edu.)
Look for a breakout above 463.30 for a potential buy, placing a stop loss at 419.65. If bearish, consider selling on a drop below 419.65.
Educational only — not investment advice.
Business Overview
Gujarat Gas Ltd is a leading natural gas distribution company in India, catering primarily to industrial, commercial, and residential sectors. With a strong focus on sustainable energy solutions, it plays a crucial role in the country's transition to cleaner fuels. The company is committed to enhancing customer experience and expanding its network to reach more consumers. Its robust infrastructure and strategic initiatives position it as a key player in the energy market, making it an attractive choice for investors seeking growth in the green energy sector.
- Leading natural gas distributor in India
- Focus on industrial, commercial, and residential sectors
- Commitment to sustainable energy solutions
- Expanding network for wider consumer reach
- Strong infrastructure and strategic initiatives
- Attractive growth potential for investors
Investment Thesis
Gujarat Gas Ltd stands out as a robust investment choice due to its credible promoter group, significant growth potential in digital services, and attractive valuation compared to peers. The company is well-positioned to capitalize on the increasing demand for natural gas in India.
- Strong backing from a reputable promoter group ensures stability and governance.
- Expanding digital services present a lucrative growth runway.
- Valuation metrics indicate an attractive entry point versus industry peers.
- Strategic focus on increasing natural gas penetration aligns with India's energy transition.
- Consistent financial performance enhances investor confidence.
Opportunity vs Risk
Opportunities
- Growing demand for natural gas
- Government support for clean energy
- Expansion into new markets
- Strong financial performance
- Increasing customer base
Risks ⚠️
- Regulatory changes affecting operations
- Volatility in gas prices
- Competition from alternative energy sources
- Economic slowdown impact
- Dependence on infrastructure development
Peer Perspective
Gujarat Gas Ltd trades at a slight premium to peers like Indraprastha Gas and Mahanagar Gas, reflecting its robust growth potential. A sustained improvement in margins could trigger a rerating, aligning it more closely with sector leaders.
Future Outlook
Gujarat Gas Ltd is well-positioned for growth, driven by increasing demand for natural gas. However, successful execution of expansion plans and stringent cost control will be crucial to fully realize its potential.
AI FAQs for Retail Users
- Q: Is it a safe stock?A: Backed by a known group; stability depends on consistent execution.
- Q: Why is it cheap?A: Past earnings volatility; market awaits proof of steady margins.
- Q: What’s the upside?A: If margins improve sustainably, re-rating potential increases.
📊 Stock Investment Checklist (100 Points)
Gujarat Gas Ltd • Updated: 2025-09-17 02:16:57
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10BusinessHighThe gas distribution sector is growing with increasing demand for cleaner energy.
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10GrowthHighConsistent revenue growth driven by expanding customer base and infrastructure.
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10ProfitabilityHighStrong ROE and ROCE, but OCF has some fluctuations.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighHealthy balance sheet with manageable debt levels.
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9GovernanceHighGood promoter holding, but some concerns over pledging.
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6DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 72 / 100
• Decent
Gujarat Gas Ltd shows decent potential with solid growth prospects, but investors should be cautious of valuation and execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100