Gujarat State Petronet share price target cut 35% by Morgan Stanley after downgrade; Stock falls
Published on 12/09/2025 10:24 AM
Gujarat State Petronet share price target cut 35% by Morgan Stanley after downgrade; Stock fallsThe brokerage prefers GAIL and Petronet LNG as better plays on India's gas adoption theme, given Gujarat State Petronet's limited growth capex and pipeline capacity expansion.By Meghna Sen September 12, 2025, 10:24:05 AM IST (Published)2 Min ReadShares of Gujarat State Petronet Ltd. (GSPL) are trading lower on Friday, September 12, after global brokerage firm Morgan Stanley downgraded the stock.
The brokerage downgraded Gujarat State Petronet to 'Equalweight' from its earlier 'Overweight' rating, while cutting the price target by 35% to ₹295 from ₹452 earlier.
The brokerage said it prefers GAIL and Petronet LNG as better plays on India's gas adoption theme, given GSPL's limited growth capex and pipeline capacity expansion.
However, with the upcoming restructuring from the GSPC Group, Morgan Stanley said that GSPL could gain more investor attention.
Gujarat State Petronet's growth will largely depend on gas transmission volumes, pipeline tariffs, and capital expenditure for planned pipeline network expansion.
Further, the brokerage has raised its holdco discount on Gujarat Gas to 40% from 0% in the interim to reflect execution risk from the restructuring.
Morgan Stanley expects Gujarat State Petronet's volume growth to rise at a 4% CAGR between FY25 and FY28, which is below the industry average of 7.7%.
Key upside risks, as per the brokerage, include LNG volumes increase more than anticipated, regulated transmission tariffs rise higher than expected, and Chhara and Jafrabad FSRU terminals ramp up earlier than planned.
Downside risks include ramp-up of Reliance Industries' petcoke gasification plant, and delays in Chhara and Jafrabad terminal operations.
Shares of Gujarat State Petronet are trading 1.61% lower at ₹305. The stock has declined nearly 17% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsGAILGail India share priceGujarat State PetronetPetronet LNGshare market today