GSPL stock price saw a deep correction (14% since April 9, the day of the tariff order of the regulator for Indraprastha Gas) as reflecting the markets concerns about potential large cuts to GSPL’s transmission tariffs.
Kotak Sec had previously cautioned about likely reduction to GSPL’s transmission tariffs but think the concerns may be overdone given that the stock trades at 1X EV/GCI (FY2012E basis). They upgrade the stock to BUY from ADD with a 12-month forward Target Price of Rs 85.
GSPL's expected EPS for FY 12 and FY 13 is Rs 8 and Rs 8. Yes no Growth.
