 "Gas distribution stocks rally; Gujarat Gas, GAIL up over 6%")
Shares of gas distribution companies such as GAIL (India), Gujarat Gas Company, Indraprastha Gas (IGL) and Petronet LNG have rallied by up to 18% on the bourses on back of heavy volumes.
Gujarat Gas Company has rallied 18% to Rs 571, while GAIL (India) surged 11% to Rs 346, followed by Petronet LNG surged 9% to Rs 225 and IGL by 7% to Rs 496 on the BSE in intra-day trade. The BSE S&P Sensex was up 0.51% or 131 points at 25,973 at 10:54 AM.
In past one-week, GAIL (India) has rallied 23% to Rs 346 from Rs 282 on November 13, after Mahanagar Gas Ltd (MGL) has filed draft papers with the capital markets regulator Securities Exchange Board of India (Sebi) to raise funds through a public offer. GAIL and British Gas Asia each hold 49.75% in MGL.
According to analysts, GAIL stands to be a key beneficiary of the new draft hydrocarbon policy announced early this week.
"As this timeline progresses, we expect a gradual valuation re?rating for gas transmission companies like GAIL and GSPL in anticipation of their current sub?50% utilisation getting enhanced in the long term. In contrast, Petronet LNG’s (PLNG) terminal value shall decline as import dependency potentially decreases, Jal Irani and Yusufi Kapadia," analysts at Edelweiss Securities said in a report.
Gujarat Gas Company has rallied 18% to Rs 571, while GAIL (India) surged 11% to Rs 346, followed by Petronet LNG surged 9% to Rs 225 and IGL by 7% to Rs 496 on the BSE in intra-day trade. The BSE S&P Sensex was up 0.51% or 131 points at 25,973 at 10:54 AM.
In past one-week, GAIL (India) has rallied 23% to Rs 346 from Rs 282 on November 13, after Mahanagar Gas Ltd (MGL) has filed draft papers with the capital markets regulator Securities Exchange Board of India (Sebi) to raise funds through a public offer. GAIL and British Gas Asia each hold 49.75% in MGL.
According to analysts, GAIL stands to be a key beneficiary of the new draft hydrocarbon policy announced early this week.
"As this timeline progresses, we expect a gradual valuation re?rating for gas transmission companies like GAIL and GSPL in anticipation of their current sub?50% utilisation getting enhanced in the long term. In contrast, Petronet LNG’s (PLNG) terminal value shall decline as import dependency potentially decreases, Jal Irani and Yusufi Kapadia," analysts at Edelweiss Securities said in a report.
"Anticipating higher pipeline utilisations over long term, the market may gradually start bidding?up terminal values for GAIL and GSPL way ahead of earnings gains. In contrast, lower imports could hurt PLNG’s terminal value," added the report.
