According to Motilal Oswal's research report dated August 12, 2026, the brokerage has issued a buy rating on Gujarat Energy Limited with a target price of ₹360 per share. The recommendation is based on the company's strong operational performance and attractive valuation metrics.
As reported by Motilal Oswal, Gujarat Energy's city gas distribution (CGD) volumes were in line with estimates at 12.3mmscmd, representing a 39% year-on-year increase. The CNG and I&C-PNG volumes exceeded expectations by 3% and 4% respectively. Third-party gas trading volumes stood at 3.3mmscmd in Q1FY27 and 4.6mmscmd in Q4FY26. The EBITDA margin for the CGD business was ₹5.2 per scm, while gas trading EBIT jumped 3x year-on-year with a 78% quarter-on-quarter increase.
According to the brokerage report, Gujarat Energy's EBITDA came in 9% above estimates at ₹13 billion. The CGD segment EBIT increased 8% year-on-year and 35% quarter-on-quarter, while the gas trading segment showed strong growth momentum. The company's current trading multiple stands at 11.8x FY28 P/E.
The stock has gained 6.44% following the latest developments, with domestic institutional investors (DIIs) significantly increasing their holdings. DIIs increased their stake by 14.53 crore shares between March 31 and June 30, taking the total holding to 29.52 crore shares. The net buying by DIIs stood at ₹5,298 crore, reflecting strong institutional confidence in the company's growth prospects.
