Gujarat Gas inflates over 7 per cent

Gujarat Gas Company Limited, the BSE 500 stock has rallied over 7 per cent on an intraday basis on June 28. The shares have gained on the news that the company has accepted the authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB), to lay, operate build or expand city or local natural gas distribution network for Ahmedabad district (excluding area already authorised) in Gujarat.

The shares currently as at 11.04 am are trading at Rs 561.55, up by 7.57 per cent. The shares' 52-week high/low stand at Rs 680/455.The shares in the last 5 days have rallied as much as 8 per cent defeating the BREXIT effect. However, as compared to the last 6 months the shares have plunged as much as 6 per cent.

The company has posted some exceptional results this quarter. In Q4FY16 the profits have jumped as much as 189 per cent. However, the revenue has come down by 7 per cent in Q4FY16 due to the fall in natural gas prices. EBITDA in Q4FY16 also has seen a surge of 41 per cent.

Gujarat Gas Company Limited (GGCL), is an Indian natural gas distribution company. Established in 1980, and headquartered in Ahmedabad, the company operates primarily in Gujarat. Gujarat Gas Limited (formerly known as GSPC Distribution Networks Limited), has emerged as India's largest city gas distribution player.