Gujarat State Petronet Ltd. (GSPL) was listed on the National Stock Exchange (NSE) on February 16, 2006. Since listing, it has given a massive return of around 70% to its investors. Will GSPL continue to provide such impressive returns this year and in the future as well? In this article, we will explore the GSPL future growth potential and GSPL share price target from 2025 to 2050.
About GSPL
Gujarat State Petronet Limited (GSPL) is a government company that mainly transports natural gas. The Gujarat government established GSPL in 2003 to build and operate natural gas pipelines throughout the state. GSPL owns and manages a vast pipeline network that transports natural gas to a variety of industries, power plants, and communities. GSPL is part of the Gujarat State Petroleum Corporation Group, which helps to address the state’s increasing energy demands.
GSPL Business Model
- Natural Gas Transportation: GSPL supplies natural gas to various power plants and industries.
- Infrastructure Development: GSPL develops and maintains pipelines and other gas transportation infrastructure. It earns money from both the government and private corporations for developing these facilities.
- Storage and Distribution Services: In addition, the company provides natural gas storage facilities and earns money by charging customers who need to store gas for future consumption
- Consulting and Technical Services: GSPL focuses on developing and building gas transmission networks. It generates revenue by providing support and technical services to other gas firms and governments.
GSPL Fundamental Analysis
| Stock Name | Gujarat State Petronet Ltd. |
|---|---|
| NSE Symbol | GSPL |
| Market Cap | ₹ 18582 |
| 52W High | ₹ 470 |
| 52W Low | ₹ 260 |
| Stock P/E (TTM) | 13.9 |
| Book Value | ₹ 198 |
| Dividend Yield | 1.57 % |
| ROCE | 21.5 % |
| ROE | 16.1% |
| Face Value | ₹ 10.0 |
| Industry PE | 15.8 |
| Price to book value | 1.62 |
| Debt to equity | 0.01 |
| PEG Ratio | 1.39 |
| Quick ratio | 1.29 |
| Share holders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 37.63% | 37.63% | 37.63% |
| FIIs | 16.72% | 15.67% | 14.75% |
| DIIs | 24.88% | 24.74% | 25.79% |
| Government | 2.01% | 2.01% | 2.01% |
| Public | 18.75% | 19.95% | 19.82% |
| No. of Shareholders | 1,59,984 | 1,80,765 | 2,08,446 |
Key Factors Driving GSPL Future Growth
- Increasing Demand for Natural Gas: As companies and cities in India switch to more green energy sources, demand for natural gas will increase. GSPL can benefit from this by increasing its pipeline network and delivering additional gas.
- Regulatory Push for Gas Usage: Government policies are pushing industries to use more natural gas, creating long-term demand for GSPL’s services.
- Focus on Renewable Energy: As the world shifts toward cleaner energy, GSPL will position itself to play a key role in the renewable energy sector by providing infrastructure for renewable gas projects such as biogas.
Pros of Investing in GSPL
- Strong Market Position: GSPL is a leading player in India’s natural gas transmission sector, especially in Gujarat.
- Strong Financials: GSPL has a market capitalisation of ₹17,138 crore and a stock P/E ratio of 12.8, indicating solid financial health.
- High Return on Capital Employed (ROCE): With an ROCE of 21.5%, GSPL effectively uses its capital to generate profits.
- Healthy Return on Equity (ROE): GSPL’s ROE stands at 16.1%, indicating effective management and profitable operations.
- Minimal Debt: GSPL is almost a debt-free company, which reduces its financial risk.
- Consistent Growth: CDSL has delivered good profit growth of 15% CAGR and good sales growth of 32% over the last 10 years.
- High Cash Reserves: As of September 2024, GSPL has cash reserves of ₹10,626 crores, which is excellent for a company with a market capitalization of ₹17,000 crores.
- High Institutional Ownership: As of December 31, 2024, institutional investors hold a significant portion of GSPL’s shares, with FIIs owning 14.67% and DIIs holding 25.80%. This high institutional ownership indicates confidence in the company’s performance and growth.
- Strong Sales Growth: GSPL sales have grown at 32% CAGR over the last ten years.
- High Return on Capital Employed (ROCE): GSPL 5yrs average ROCE is 27.4 % which shows that it is utilizing its capital effectively to generate profits.
- High Return on Equity (ROE): GSPL 5-year average is 23.1% which shows that the company is using its shareholders funds well to generate profits.
- Low P/B Ratio (Undervalued Stock): GSPL Price to Book Value (P/B) ratio is 1.62 which shows that its stock is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: GSPL PE ratio is 13.9, which is lower than the industry average of 15.8, making it relatively undervalued and potentially a good investment opportunity.
- Debt Free Company: GSPL is almost debt free company with a debt to equity ratio of 0.01, which shows its financial stability.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 14.75% in March 2025 from 14.67% in December 2024, which indicates growing confidence in the GSPL future potential by the FIIs.
Cons of Investing in GSPL
- Dividend Yield Below Peers: GSPL’s dividend yield is 1.38%, which is lower than some of its industry peers. For example, GAIL pays a dividend yield of 3.12%, while IGL pays 2.32%.
- Dependence on Government Policies: GSPL’s activities are greatly affected by government policies and regulations in the energy sector. Any unfavourable shifts to these regulations may have a negative impact on the company’s profitability and growth prospects.
- Poor Profit Growth – GSPL profit has grown at a CAGR of just 0% over the last three years, showing weak earnings growth over time.
- Low Promoter Holding: GSPL promoter holding is 37.6%, which is relatively low. This may indicate low promoter confidence and less control over decision-making, allowing outside investors to have more influence.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 25.79% in March 2025 from 25.80% in December 2024, indicating a decline in DIIs confidence in the company’s future growth prospects.
GSPL Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 564 | 564 | 564 |
| Reserves | 8,885 | 10,261 | 10,626 |
| Borrowings | 149 | 140 | 136 |
| Other Liabilities | 7,718 | 8,091 | 9,002 |
| Total Liabilities | 17,316 | 19,056 | 20,327 |
| Fixed Assets | 10,481 | 10,779 | 11,201 |
| CWIP | 1,409 | 1,680 | 1,427 |
| Investments | 1,621 | 1,889 | 1,821 |
| Other Assets | 3,805 | 4,708 | 5,879 |
| Total Assets | 17,316 | 19,056 | 20,327 |
By the end of 2025, the GSPL share price is expected to be around ₹440 in normal conditions. In a bear market, it might be ₹410, and in a bull market, it may cross its 52-week high of ₹510.
| GSPL Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 410 |
| 2nd Target | 440 |
| 3rd Target | 510 |
In 2026, the GSPL share price is expected to be around ₹520 in a normal situation. In a bear market, it might be ₹490, and in a bull market, it may cross ₹660.
| GSPL Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 490 |
| 2nd Target | 520 |
| 3rd Target | 660 |
According to our analysis, the GSPL share price is expected to be around ₹660 in 2027. In a bear market, it might be ₹590, and in a bull market, it may cross ₹860.
| GSPL Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 590 |
| 2nd Target | 660 |
| 3rd Target | 860 |
According to our analysis, the GSPL share price may trade near ₹950, by 2028; bearish conditions could pull it down to ₹710, while a strong bull run might lift it to ₹1120.
| GSPL Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 710 |
| 2nd Target | 950 |
| 3rd Target | 1120 |
In a normal situation, the GSPL share price is projected to be approximately ₹980 in 2029. In a bear market, the value may be as low as ₹850, while in a bull market, it may rise to ₹1456.
| GSPL Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 850 |
| 2nd Target | 980 |
| 3rd Target | 1456 |
In a normal situation, the GSPL share price is projected to be approximately ₹1450 in 2030. In a bear market, the value may be as low as ₹1020, while in a bull market, it may rise to ₹1890.
| GSPL Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 1020 |
| 2nd Target | 1450 |
| 3rd Target | 1890 |
By 2035, the GSPL share price is projected to be around ₹2500 under normal conditions. In adverse markets, the price could fall to ₹2040, while favorable conditions might push it up to ₹5680.
| GSPL Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 2040 |
| 2nd Target | 2500 |
| 3rd Target | 5680 |
Under normal conditions, the GSPL share price might hit ₹6500 by 2040. A bearish trend could lower it to ₹4080, whereas a bullish surge could raise it to ₹17040.
| GSPL Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 4080 |
| 2nd Target | 6500 |
| 3rd Target | 17040 |
In 2050, the GSPL share price is expected to be around ₹19500 in a normal situation. In a bear market, it might be ₹16320, and in a bull market, it may go up to ₹102250.
| GSPL Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 16320 |
| 2nd Target | 19500 |
| 3rd Target | 102250 |
| Years | Target Price |
|---|---|
| GSPL Share Price Target 2025 | ₹410 to ₹510 |
| GSPL Share Price Target 2026 | ₹490 to ₹660 |
| GSPL Share Price Target 2027 | ₹590 to ₹860 |
| GSPL Share Price Target 2028 | ₹710 to ₹1120 |
| GSPL Share Price Target 2029 | ₹850 to ₹1456 |
| GSPL Share Price Target 2030 | ₹1020 to ₹1890 |
| GSPL Share Price Target 2035 | ₹2040 to ₹5680 |
| GSPL Share Price Target 2040 | ₹4080 to ₹17040 |
| GSPL Share Price Target 2050 | ₹16320 to ₹102250 |
Conclusion
GSPL is a major player in India’s natural gas transportation market. It benefits from rising natural gas consumption and government investment in energy infrastructure. However, it faces several challenges, including market competition, dependency on government programs, and capital-intensive operations. Overall, GSPL has a bright future, but investors should consider the risks before investing. For the latest updates, check GSPL official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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