Gujarat Gas, one among the top five gainers on the BSE currently, opened with a gain of 2.23% at Rs.149, going on to hit an intra day high at Rs.155, up 6.5%. Its UC is at 20% and today it stands at Rs.174.75.
The stock price has surged on news that it has received grant of authorization for six city gas distribution networks - Sirsa, Fatehabad And Mansa (Punjab) Districts; Ujjain (Except Area Already Authorized) District, Dewas (Except Area Already Authorized) District And Indore (Except Area Already Authorized) District; Jhabua, Banswara, Ratlam And Dungarpur Districts; Ferozepur, Faridkot And Sri Muktsar Sahib Districts; Hoshiarpur And Gurdaspur Districts; Jalore And Sirohi Districts.
The company has been granted 300 months of infrastructure exclusivity i.e. valid up to March 28, 2044 and 96 months of marketing exclusivity valid up to March 28, 2027.
This, on the back of the recent order of National Green Tribunal (NGT) is a great fillip to the stock price.
The NGT’s order to shut all coal-operated units of ceramic companies in Morbi, Gujarat goes very much in favor of Gujarat Gas as it is only supplier of gas in the area. Morgan Stanley said that this alone could see its F20/F21 earnings get a 12-15% boost.