Very small impact. I used to hold is earlier but now sold so not tracking much. But ~60% of GGL’s revenue come for morbi where they can’t use APM gas. For that they buy gas from open market. So this announcement of lower APM allocation won’t hurt them much. Also, allocation from APM has been gradually decreasing since last 1 yr. Only this time the fall is drastic (~20%).
However please note morbi is partially shifting to propane gas which is cheaper. This is the reason why GGL share has not performed since last 3 yrs as Morbi shifted ~25% gas requirement to propane. This is also the reason they can’t increase gas price. So there is no supplier’s moat in GGL currently. Which is also the reason GGL shares won’t perform much, unless they increase volume sale in other GAs, which has its own challenge.
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