Gujarat Gas Ltd shares surged on Friday, rising nearly 8 percent after brokerage firm Nomura upgraded the stock to ‘buy’ from ‘reduce’. The stock was trading at Rs 362.05 in afternoon trade, up 7.9 percent, making it the top gainer on the BSE Midcap index.
Nomura set a target price of Rs 390 per share on Gujarat Gas stock, implying an upside of around 16 percent from previous closing levels. The upgrade is attributed to a potential demand recovery in Gujarat’s Morbi ceramic cluster, where a shift from propane to natural gas is expected to support volumes.
Nomura noted that Morbi-based producers are planning price hikes of 15-25 percent to offset higher fuel costs, which could aid Gujarat Gas’ margins over time. Despite the rally, Gujarat Gas stock remains down 18.7 percent over the past year, underperforming the Sensex, which is down 0.3 percent during the same period.
