Gujarat Gas Ltd. (GUJGASLTD) AI Stock Analysis

• Market Cap: ₹243.41B
• Dividend Yield: 1.47%
• Average Volume (3M): 12.46K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.03
• Revenue Growth: -2.39%
• EPS Growth: -12.17%
• Country: IN
• Employees: 942
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): 3.90
• Shares Outstanding: 688,390,140
• 10 Day Avg. Volume: 9,655
• 30 Day Avg. Volume: 12,460
• PEG Ratio: 58.30
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 26.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 17.15
• Revenue Forecast (FY): ₹151.35B

• Rating: 69 Neutral
• Price Target: ₹387.00 ▼(-11.44% Downside)
• Action: Downgraded Date: 10/07/25
• Date: Action: Downgraded 10/07/25

Gujarat Gas Ltd. demonstrates strong financial performance with effective revenue and profit growth, and solid balance sheet stability. However, technical indicators suggest a neutral market sentiment, and the valuation indicates moderate pricing. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Low financial leverage

Sustained low leverage and a solid equity base give Gujarat Gas durable financial flexibility. Over 2–6 months this supports funding network expansion, absorbing commodity cost swings, and sustaining investment-grade access to capital, reducing refinancing and solvency risk.

Strong cash generation

Consistently strong operating cash flow and improved free cash flow indicate reliable internal financing for capex, maintenance and distributions. This cash conversion resilience supports continued network additions and buffers short-term market or demand variability.

Robust operating margins and CGD position

Healthy gross and EBITDA margins reflect effective cost controls and distribution efficiency in its city gas business. Combined with established CGD infrastructure, these margins support sustained profitability as volumes scale and provide a competitive cushion against input cost fluctuations.

Negative Factors

Revenue decline

A year-over-year revenue decline suggests near-term volume or realization pressure in core PNG/CNG sales. If trends persist over several quarters, it can constrain operating leverage, limit cash available for network expansion, and signal weaker demand in authorized geographies.

Earnings contraction

Negative EPS growth points to margin compression or lower utilization. Persistent EPS declines reduce internal reinvestment capacity and may force trade-offs between capex, debt reduction and shareholder payouts, weakening financial optionality over the medium term.

Margin/FCF volatility and regulatory exposure

Variable free cash flow growth, noted net profit margin swings, and dependency on tariff rules and the procurement-to-selling spread create structural earnings risk. Regulatory changes or adverse procurement spreads can quickly compress margins and disrupt planned capex or dividend plans.

Gujarat Gas Ltd. Business Overview & Revenue Model

Company Description

Gujarat Gas Limited engages in the distribution of natural gas in India. It operates a network of approximately 33,500 kilometers of gas pipeline and 721 compressed natural gas stations. As of March 31, 2022, the company supplied piped natural gas to approximately 17 lakh households; approximately 4,300 industrial customers; and approximately 13,600 commercial and non-commercial customers. It operates in 21 districts of the state of Gujarat, 9 districts of the state of Punjab, 5 districts of the state of Madhya Pradesh, 4 districts of the state of Rajasthan, 2 districts of the state of Maharashtra, 2 districts of the state of Haryana, and Dadra and Nagar Haveli in the Union Territory of Dadra and Nagar Haveli and Daman and Diu. The company was formerly known as GSPC Distribution Networks Limited and changed its name to Gujarat Gas Limited in May 2015. Gujarat Gas Limited was incorporated in 2012 and is based in Ahmedabad, India. Gujarat Gas Limited is a subsidiary of Gujarat State Petronet Limited.

How the Company Makes Money

Gujarat Gas makes money primarily by purchasing natural gas from upstream suppliers and selling it to end customers through its CGD network. Key revenue streams include: (1) Sales of natural gas as PNG to industrial customers (typically the largest volume segment), commercial customers, and residential households, where revenue is driven by volumes consumed and tariff/price realization; (2) Sales of CNG to the transport segment via company-owned/operated CNG stations (or stations operated with dealers/partners), where earnings depend on retail CNG volumes, station throughput, and the spread between gas procurement cost and selling price; and (3) Network-related charges/fees where applicable (e.g., connection-related income such as installation/service activities), subject to regulatory and contractual terms. Profitability is largely influenced by (a) the spread between gas procurement costs and selling prices, (b) demand/volume growth from network expansion and customer additions, (c) mix of customer segments (industrial vs. CNG vs. domestic), (d) operating efficiency and losses in distribution, and (e) regulatory framework governing CGD authorizations and any applicable tariff rules. Specific supplier names, contract terms, and partnership details are null.

Gujarat Gas Ltd. Financial Statement Overview

Summary

Gujarat Gas Ltd. exhibits strong financial health across income, balance sheet, and cash flow metrics. The company showcases effective revenue and profit growth, solid balance sheet stability with low leverage, and healthy cash flow generation. However, attention should be paid to net profit margin fluctuations and managing capital expenditures to ensure sustained free cash flow growth.

Income Statement

Gujarat Gas Ltd. has demonstrated strong revenue growth over the past years, with a slight dip in 2025. The gross profit margin is healthy, indicating effective cost management. However, the net profit margin has shown some fluctuations. The EBIT and EBITDA margins are robust, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity base with a favorable debt-to-equity ratio, indicating low financial leverage. The equity ratio is also solid, showcasing financial stability. Return on Equity (ROE) is consistently positive, reflecting effective utilization of shareholder funds.

Cash Flow

Operating cash flows are strong and consistently exceed net income, indicating good cash generation capabilities. The free cash flow has improved significantly over the years, although the free cash flow growth rate is variable, suggesting potential volatility in capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	159.06B	164.87B	156.90B	167.59B	164.56B	98.66B
Gross Profit	32.35B	32.65B	31.34B	34.86B	30.19B	26.60B
EBITDA	18.82B	18.80B	18.55B	23.88B	20.80B	20.87B
Net Income	11.16B	11.48B	11.44B	15.28B	12.87B	12.70B
Balance Sheet
Total Assets	133.70B	126.51B	116.92B	109.27B	95.87B	84.80B
Cash, Cash Equivalents and Short-Term Investments	24.47B	3.59B	9.26B	6.91B	220.00M	2.80B
Total Debt	1.51B	1.50B	1.50B	1.52B	6.29B	9.83B
Total Liabilities	46.72B	41.61B	39.69B	38.99B	39.57B	39.68B
Stockholders Equity	86.98B	84.90B	77.22B	70.28B	56.30B	44.78B
Cash Flow
Free Cash Flow	7.30B	10.54B	7.97B	12.89B	2.95B	9.04B
Operating Cash Flow	10.21B	18.06B	16.34B	23.75B	16.62B	16.55B
Investing Cash Flow	-9.53B	-19.21B	-8.79B	-10.39B	-12.94B	-6.10B
Financing Cash Flow	-499.70M	-4.74B	-5.14B	-6.78B	-6.28B	-13.18B

Gujarat Gas Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 437.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GUJGASLTD, the sentiment is Negative. The current price of 437 is above the 20-day moving average (MA) of 390.29, above the 50-day MA of 406.47, and above the 200-day MA of 424.05, indicating a bearish trend. The MACD of -13.78 indicates Positive momentum. The RSI at 30.30 is Neutral, neither overbought nor oversold. The STOCH value of 6.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GUJGASLTD.

Gujarat Gas Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIL	77 Outperform	₹948.79B	16.11	―	4.39%	5.91%	-5.42%
IGL	75 Outperform	₹215.39B	17.31	―	0.77%	8.88%	-13.51%
GSPL	71 Outperform	₹143.73B	16.83	―	1.69%	0.44%	-33.05%
MGL	69 Neutral	₹98.79B	13.95	―	2.62%	19.78%	-14.38%
GUJGASLTD	69 Neutral	₹243.41B	26.58	―	1.47%	-2.39%	-12.17%
ATGL	68 Neutral	₹611.11B	98.39	―	0.04%	16.61%	-10.87%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Gujarat Gas Ltd. Corporate Events

Gujarat Gas Receives Independent ESG Rating of 71.7 from SES ESG Research

Gujarat Gas Limited disclosed that SES ESG Research Pvt. Ltd. has assigned it an ESG rating of 71.7, reflecting the company’s performance on environmental, social, and governance parameters. The rating, based on publicly available information, was prepared independently without any engagement from Gujarat Gas and was communicated to the company via BSE, with the details now also made accessible through the company’s website for investors and other stakeholders.

The independent nature of the assessment underscores growing external scrutiny of Gujarat Gas’s sustainability practices and adds a third-party benchmark to its ESG profile in India’s energy and utilities sector. By publicly sharing the rating, the company enhances transparency around its non-financial performance, which may influence investor perception, governance expectations, and its positioning among peers in the regulated city gas distribution market.

Gujarat Gas Posts Q3 FY26 Earnings Call Audio on Website for Investors

Gujarat Gas Limited has notified the stock exchanges that the audio recording of its post-results earnings conference call for the third quarter of FY 2025-26, held with analysts on 21 January 2026, has been made available on the company’s website. The disclosure, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, enhances transparency for investors and stakeholders by providing broader access to management’s commentary and analysis of the company’s quarterly financial performance.

Gujarat Gas Schedules Post-Results Earnings Call for December Quarter

Gujarat Gas Limited has scheduled a post-results earnings conference call with analysts on 21 January 2026 to discuss its financial performance for the quarter ended 31 December 2025. The call, which will include a presentation on earnings followed by an interactive Q&A session, underscores the company’s ongoing engagement with the investment community and its efforts to provide transparency and clarity around quarterly results, with the conference details also made available on its website.

Gujarat Gas Urges Physical Shareholders to Demat Holdings Ahead of Group Restructuring

Gujarat Gas Limited has informed stock exchanges that it has written to shareholders holding shares in physical form, urging them to dematerialise their holdings as the company transitions to issuing securities only in electronic (demat) form under a Composite Scheme of Amalgamation and Arrangement involving Gujarat State Petroleum Corporation, Gujarat State Petronet, GSPC Energy, Gujarat Gas and GSPL Transmission. Once the scheme takes effect following approval by the Ministry of Corporate Affairs, shareholders of Gujarat Gas on a designated record date will receive shares of GSPL Transmission in a prescribed share exchange ratio, but these new shares will be allotted solely in dematerialised form, with any entitlement for investors who fail to dematerialise in time being moved into a demat suspense escrow account until they complete the conversion, reinforcing regulatory moves toward full demat compliance and cleaner shareholding records.

Gujarat Gas Non-Executive Director S. J. Haider Resigns Following Superannuation

Gujarat Gas Limited has announced that Shri S. J. Haider, IAS (Retd.), has resigned from the Board as a Non-Executive Director, with his resignation effective from 1 January 2026, following his superannuation from government service on 31 December 2025. The departure of Haider, who served as an Additional Chief Secretary in the Government of Gujarat’s Energy & Petrochemicals Department, reflects routine board-level rotation linked to state government postings, and the company has formally notified the stock exchanges in line with regulatory disclosure requirements, signalling continuity of governance processes for investors and other stakeholders.

Gujarat Gas Names Senior IAS Officer Avantika Singh Aulakh as Managing Director

Gujarat Gas Limited has appointed senior IAS officer Avantika Singh Aulakh as Additional Director and Managing Director with effect from 24 December 2025, following a notification from the Government of Gujarat, reinforcing the state’s direct oversight and promoter influence in the utility’s leadership. Aulakh brings over two decades of administrative experience, including roles as District Collector in major Gujarat districts, senior positions in the state’s Energy and Petrochemicals Department, and leadership posts at infrastructure and industrial entities such as Gujarat Maritime Board, Gujarat Infrastructure Development Board, Gujarat Rail Infrastructure Development Corporation and Gujarat Alkalies and Chemicals, underscoring a strategic move to align Gujarat Gas’s governance with the state’s broader infrastructure and energy policy objectives; the company confirmed she is not debarred by any regulator and that she has no familial ties with existing board members.

Gujarat Govt Appoints Avantika Singh Aulakh as New MD of Gujarat Gas

The Government of Gujarat has appointed IAS officer Avantika Singh Aulakh as the new Managing Director of Gujarat Gas Limited, replacing Milind Torawane, who has been transferred to serve as Principal Secretary in the state’s Education Department. The leadership change, notified by the state government and disclosed under market regulations, signals a fresh administrative direction for the state-controlled gas distributor, with formalities to be completed after internal approvals, and may influence the company’s strategic execution given its status as a key public-sector player in India’s city gas ecosystem.