PSU stock: Gujarat Gas Ltd reported lower-than-anticipated June quarter margins, partly offset by modestly higher-than-anticipated volumes. Net income missed analyst estimates marginally while a lower Ebitda was offset by an increase in other income. The gas utility cut its volume growth guidance for FY25 to 6-7 per cent against an earlier guidance of 10 per cent.
The Gujarat Gas’ management expects industrial PNG volumes in the Morbi cluster to decline 30-40 per cent QoQ in the September quarter. Supplies to the Morbi cluster currently stands at 2.5-3mmscmd. A few analysts are negative on the Gujarat Gas stock’s prospects, as they believe valuations have turned expensive on the counter. 

Nomura India suggested a ‘Reduce’ rating on the…