Gujarat Gas Ltd. (GUJGASLTD) AI Stock Analysis

• Market Cap: ₹291.98B
• Dividend Yield: 1.47%
• Average Volume (3M): 12.46K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.09
• Revenue Growth: -2.39%
• EPS Growth: -12.17%
• Country: IN
• Employees: 942
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Gas
• EPS (TTM): 4.10
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹473.00 ▲(8.24% Upside)

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

Strong Financial Health

The company's robust financial health, with effective revenue and profit growth, solid balance sheet stability, and healthy cash flow generation, positions it well for long-term sustainability and growth.

Low Financial Leverage

Low financial leverage provides Gujarat Gas Ltd. with greater financial flexibility and reduces risk, allowing for better management of economic downturns and investment opportunities.

Operational Efficiency

Strong EBIT and EBITDA margins indicate efficient operations, enabling the company to maintain profitability and competitive advantage in the gas distribution sector.

Negative Factors

Revenue Growth Decline

The recent decline in revenue growth could signal challenges in market expansion or increased competition, potentially impacting future profitability and market position.

Net Profit Margin Fluctuations

Fluctuating net profit margins may indicate volatility in cost management or pricing power, which could affect long-term profitability and financial predictability.

Variable Free Cash Flow Growth

Inconsistent free cash flow growth can affect the company's ability to fund new projects and return capital to shareholders, potentially impacting long-term strategic initiatives.

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 Ltd. generates revenue through the distribution and sale of natural gas across various segments. The key revenue streams for the company include the sale of compressed natural gas (CNG) for automobiles and piped natural gas (PNG) for residential, commercial, and industrial use. The company earns money by charging customers for the gas consumed, which is measured in standard cubic meters. Additionally, Gujarat Gas Ltd. benefits from strategic partnerships and long-term contracts with gas suppliers and infrastructure developers, which help in securing gas supply and expanding its distribution network. The company also engages in continuous infrastructure development to increase its reach and customer base, thereby driving revenue growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	159.08B	164.87B	156.90B	167.59B	164.56B	98.66B
Gross Profit	32.71B	32.65B	31.34B	34.86B	30.19B	26.60B
EBITDA	18.74B	18.80B	18.55B	23.88B	20.80B	20.87B
Net Income	11.45B	11.48B	11.44B	15.28B	12.87B	12.70B
Balance Sheet
Total Assets	0.00	126.51B	116.92B	109.27B	95.87B	84.80B
Cash, Cash Equivalents and Short-Term Investments	3.59B	3.59B	9.26B	6.91B	220.00M	2.80B
Total Debt	0.00	1.50B	1.50B	1.52B	6.29B	9.83B
Total Liabilities	-84.90B	41.61B	39.69B	38.99B	39.57B	39.68B
Stockholders Equity	84.90B	84.90B	77.22B	70.28B	56.30B	44.78B
Cash Flow
Free Cash Flow	0.00	10.54B	7.97B	12.89B	2.95B	9.04B
Operating Cash Flow	0.00	18.06B	16.34B	23.75B	16.62B	16.55B
Investing Cash Flow	0.00	-19.21B	-8.79B	-10.39B	-12.94B	-6.10B
Financing Cash Flow	0.00	-4.74B	-5.14B	-6.78B	-6.28B	-13.18B

Gujarat Gas Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GUJGASLTD, the sentiment is Positive. The current price of 437 is above the 20-day moving average (MA) of 406.70, above the 50-day MA of 404.59, and above the 200-day MA of 431.52, indicating a neutral trend. The MACD of 8.43 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹1.08T	9.90	―	4.39%	5.91%	-5.42%
IGL	75 Outperform	₹261.59B	16.38	―	0.77%	8.88%	-13.51%
GSPL	71 Outperform	₹175.55B	15.80	―	1.69%	0.44%	-33.05%
MGL	69 Neutral	₹104.67B	10.71	―	2.62%	19.78%	-14.38%
GUJGASLTD	69 Neutral	₹291.98B	26.16	―	1.47%	-2.39%	-12.17%
ATGL	66 Neutral	₹612.37B	97.87	―	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 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.

Gujarat Gas Limited’s Credit Rating Reaffirmed at IND AAA/Stable

Gujarat Gas Limited has received a reaffirmation of its credit rating from India Ratings and Research Pvt. Limited, maintaining its Long-term/Short-term Rating at IND AAA/Stable / IND A1+. This affirmation reflects the company’s strong financial stability and operational performance, which is likely to bolster investor confidence and support its market positioning in the energy sector.

Gujarat Gas Releases Q2 FY 25-26 Earnings Call Transcript

Gujarat Gas Limited announced the release of the transcript for its Q2 FY 25-26 earnings conference call. This disclosure, made under SEBI regulations, provides insights into the company’s financial performance and strategic direction, potentially impacting investor perceptions and stakeholder interests.

Gujarat Gas Ltd. Appoints New Director and Chairman

Gujarat Gas Limited has announced the appointment of Mr. Manoj Kumar Das, IAS, as the new Director and Chairman of the company, effective November 2, 2025. This strategic appointment, endorsed by the Energy & Petrochemicals Department of the Government of Gujarat, is expected to strengthen the company’s leadership with Mr. Das’s extensive experience in administration and governance. His background as Chief Secretary of Gujarat and various leadership roles in government positions is anticipated to enhance the company’s operations and industry positioning.

Gujarat Gas Limited Receives ‘Adequate’ ESG Rating for FY 2025

Gujarat Gas Limited has received an ESG rating of ‘Crisil ESG 57’ for FY 2025 from Crisil ESG Ratings & Analytics Ltd., placing it in the ‘Adequate’ category. The rating was independently prepared using publicly available information, indicating the company’s moderate performance in environmental, social, and governance criteria.