We are raising GSPL from HOLD to BUY due to improved risk reward based on 27% correction in the stock in the last 3m, and our unchanged estimates and SOTP-based TP at Rs364 (Exhibit – 1). This is derived with 10% discount for policy risk in GSPL standalone transportation valuation using DCF (risk factor added due to policy uncertainty/risk to volume due to volatile gas prices). This also includes the unchanged value of its 54.17% stake in GGL at Rs371/share based on NBIE’s TP for GGL (~nil Hold-Co. Discount). The stock trades at 1.28x FY27E P/B)
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