Gujarat State Petronet - volumes lower, but valuations attractive; upgrade to Buy - BRICS Research

Gujarat State Petronet (CMP Rs83, BUY) - Volumes lower, but valuations attractive

- BRICS Research cut FY12, FY13 and FY14 volume estimates by 8%, 13%, and 8% due to lower supply from RIL and high LNG prices

- Corresponding earnings estimates fall by 8%, 15% and 9%.

- SOTP-based target price falls about 5% to Rs103, but we upgrade to BUY on attractive valuations and priced-in headwinds.

Source : Equity Bulls

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