GSPL

Gujarat State Petronet Limited 

Gujarat State Petronet Limited (GSPL) was set up to complement the efforts of GSPC. While GSPC harnesses and procures natural gas, GSPL is building the infrastructure that transmits the gas across the state of Gujarat and ultimately allows last-mile linkage to the end-user.

GSPL is laying a gas grid, to facilitate gas transmission from supply points to demand centres.

State-of-the-art network
The gas grid is equipped with the latest bi-directional gas transmission technology to enable two-way gas flow. This introduces a lot of flexibility into transmission by allowing gas to be sourced or uploaded at either end of the pipeline network. Besides, the network is continuously monitored using SCADA systems integrated with GIS technology.

Flexibility of transmission

Another innovation is in the open access or contract carrier principle of transmission. This allows any gas transmission company to approach GSPL for permission to use the network on payment of the required charges. Thus, private sector participation in gas transmission is encouraged, which makes more volumes available for consumers.

Pipeline Network

GSPL has already put in place a pipeline network of about 1960 km and further extension of pipeline network is going on. The company has signed gas transmission agreements with various industries for the transportation of natural gas from various supply sources in Gujarat. 

Fundamentals View

MARKET CAP (Rs Cr)		4,051.44		EPS (TTM)		9.12
P/E		7.89		P/C		5.83
BOOK VALUE (Rs)		43.84		PRICE/BOOK		1.64
DIV (%)		10.00%		DIV YIELD.(%)		1.39%
INDUSTRY P/E		10.12		FACE VALUE (Rs)		10

	Mar '12	Mar '11	Mar '10	Mar '09	Mar '08
Sales Turnover	1,123	1,047	1,001	488	418
Operating Profit	1,030	969	941	425	365
Net Profit	522	506	414	123	100
Earnings Per Share	9.28	9	7.36	2.2	1.78
Face Value	10	10	10	10	10
Networth	2,467	2,007	1,564	1,215	1,141
Total Debt	1,095	1,478	1,257	1,148	965
Return on NW(%)	21.16	25.25	26.46	10.18	8.8
Debt Equity Ratio	0.44	0.74	0.8	0.94	0.85
Book Value	43.84	35.64	27.8	21.62	20.3
Market Price	75.55	98.5	87.5	37.1	56.15

EPS is increasing at CAGR of 51% from 2008-12.

Average Net worth of company is 18%

Current Book Value is INR 43.84.

Industy PE is 10.12 whereas this stock is trading at 7.89 times.

Company is giving a dividend for the past 5 years.

Technical View

Momentum is making higher high and price is making a lower low.

Price is currently trading at Lower bollinger band.

Support at 38.2 level INR 69-70 as per Fibonacci Ratio.

MACD is moving upside to crossover.

Please invest before consulting your advisor.