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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 Dadra & Nagar Haveli and Thane Geographical Area (GA) which includes Palghar District of Maharashtra. Recent order of NGT has opened new opportunities for the company as the shift for dirty fuels viz.,pet coke and furnace oil to CNG will hasten post this order. Furthermore, the company is expanding into new territories viz. Bhatinda & Amritsar which should aid volumes. Street is expecting a 10 -12 % volume growth over the next 3 years which should lead to higher revenues and profits. We have an over weight rating on this count and only risk factor is government regulation on pricing – 01-06-2021 Price: 540.20 Rating: Over Weight Recommendation: Buy

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