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Gujarat Gas Company Ltd. - (Amalgamation) Stock Analysis

Mid Cap
Evaluated by 1901 users | BSE: 523477 | NSE: GUJRATGAS |
Industrial Gases & Fuels
Gujarat Gas Company was incorporated on January 17, 1980 under the name of Gujarat Amico Chem and obtained the certificate for commencement of business on August 14, 1980. It was promoted by Mafatlal Fine Spinning & Manufacturing Co. and GIIC to implement the Ankleshwar & Bharuch...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Gujarat Gas Company Ltd. - (Amalgamation) has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Dec'04Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11Dec'12Mar'14
Return on Capital Employed 23.11%23.45%17.1%24.33%20.51%19.19%25.99%29.25%31.76%35.84%
Value Creation Index 1.670.860.230.680.510.661.081.08NANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6537479691,2451,3011,4201,8492,4193,0963,123
Y-o-Y Gr. Rt.-14.4%29.7%28.5%4.6%9.1%30.3%30.8%28%0.9%
Adjusted EPS (Rs.) 5.847.666.8911.8912.4613.4420.0221.0822.0924.94
Y-o-Y Gr. Rt.-31.2%-10.1%72.6%4.8%7.9%49%5.3%4.8%12.9%
Book Value per Share (Rs.) 22.2728.934.3744.5355.3259.565.5761.1375.0577.67
Adjusted Net Profit 74.998.288.4153160172257270283320
Net Op. Cash Flow (Rs. Cr.) 68.5126110180206178285304307405
Debt to Cash Flow from Ops 0.850.960.820.620.620.870.73000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Gujarat Gas Company Ltd. - (Amalgamation) should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 19%19.1%19.1%0.9%
Adjusted EPS 17.5%14.9%7.6%12.9%
Book Value per Share 14.975.83.5
Share Price 6.3% - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'04Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11Dec'12Mar'14
Return on Equity (%) 28.4429.2621.1529.1624.3622.9132.0133.2132.0436.12
Operating Profit Margin (%) 20.4719.7915.5820.1918.0919.7622.5116.4413.315.93
Net Profit Margin (%) 11.513.249.1912.3112.3512.213.9511.239.2110.28
Debt to Equity 0.20.330.20.190.180.20.24000
Working Capital Days 145152144140158169151137124109
Cash Conversion Cycle -63-50-40-36-29-24-16-176
Entity Percentage Holding
Promoters 73.70%
Institutions 18.29%
Non-Institutions 8.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Gujarat Gas Co and arrived at the following conclusion:

Past 10 year's financial track record indicates that Gujarat Gas Co is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Gujarat Gas Co's performance infers:

Gujarat Gas Co earnings have grown by 14.9%, whereas share price has appreciated 0% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Gujarat Gas Co share prices over the last 10 years. Here is what we found out:

Gujarat Gas Co share price has appreciated 6.6% annually over the past ten years.

Gujarat Gas Company was incorporated on January 17, 1980 under the name of Gujarat Amico Chem and obtained the certificate for commencement of business on August 14, 1980. It was promoted by Mafatlal Fine Spinning & Manufacturing Co. and GIIC to implement the Ankleshwar & Bharuch National Gas distribution project by entering into an agreement on December 21, 1987. Erstwhile  a part of BG group, the company was acquired by an integrated gas major GSPC group on June

Gujarat Gas Company was incorporated on January 17, 1980 under the name of Gujarat Amico Chem and obtained the certificate for commencement of business on August 14, 1980. It was promoted by Mafatlal Fine Spinning & Manufacturing Co. and GIIC to implement the Ankleshwar & Bharuch National Gas distribution project by entering into an agreement on December 21, 1987. Erstwhile  a part of BG group, the company was acquired by an integrated gas major GSPC group on June 12,2013.

The company became a subsidiary of MIL on acquisition of 6,12,000 equity shares of Rs 10 each effective January 28, 1991. The company was allotted 1,70,000 CMD of national gas for Ankleshwar Branch project and 3,00,000 CMD of national gas for the Surat project. The name was changed to Gujarat Gas Co. on June 8, 1998.

The corporate office of the company is in Ahmedabad and its area of operations is spread in the districts of Surat and Bharuch.

Milestones

  • 1980: Incorporation of the company
  • 1988: Signed Joint Venture (JV) with Mafatlal group of gas in Gujarat
  • 1989: Commissioning of network and supply of gas in Ankleshwar
  • 1990: Commissioning of network at Bharuch
  • 1991: Commissioning of network Surat
  • 1992: Started GNG operations
  • 1994: Started GFCL (Gujarat Gas Financial Services)
  • 1997: Acquired by BG group (Formaly British Group)
  • 1999: Reached 1,00,000 customer mark
  • 2001: Started Transmission business
  • 2002: Achieved 1mmscmd of gas sales
  • 2003: Obtain OHSAS 18001 accreditation- first in gas industry in India
  • 2004: Commissioned 6 new CNG stations
  • 2005: Listed and awarded one among India’s best managed companies
  • 2006: Reached 20 plus CNG stations
  • 2007: Touched 2,00,000 PNG and 50,000 CNG customer mark
  • 2009: Received the 'Surat Na Sitara' award for the 'best consumer oriented company in surat' in the corporate category at a public function held in Surat on 24th of January 2009
  • 2012: Entered into an agreement with BG India Energy Solutions (BGIESPL), for the purchase or re-gasified LNG (RLNG) volumes of up to 1.0 mmscmd (39,206 mmbtu/day)
  • The Company  executed a fully termed Gas Sales and Transportation Contract (GSTC) with GAIL (India) Ltd (GAIL) for the purchase of gas from the Panna-Mukta and Tapti (PMT) fields.
  • Gujarat Gas gets PNGRB nod for Hazira- Ankleshwar natural gas pipeline.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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