Shares of four state-run gas transmission and distribution firms rose 1.13% to 2.33% at 12:55 IST on BSE after a global research firm reportedly presented a positive view on the sector.
Meanwhile, the S&P BSE Sensex was down 4.65 points, or 0.01%, to 32,419.11
GAIL (India) rose 2.33% to Rs 410. Indraprastha Gas rose 2.02% to Rs 1,469.20. Petronet LNG rose 1.13% to Rs 236.75. Gujarat State Petronet rose 1.42% to Rs 200.10.
A global research firm has reportedly turned more bullish on gas utilities as it sees a multi-year growth cycle ahead. The growth path was supported by benign gas prices and favourable government policies. It expects the completion of the national gas grid and favourable government policies to support rapid earnings growth even beyond this decade.
The broking firm expects Petronet's earnings CAGR to be 20% over the year ended 31 March 2017 to the year ending 31 March 2020 (FY2017-FY2020), while it could be 16% over FY2017-FY2020, percent from GAIL (India). Meanwhile, in case of Gujarat State Petronet, it sees earnings CAGR of 15% over (FY2017-FY2020).
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