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Below is quote on Gujarat Gas as stock up 5% by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

Gujarat Gas Ltd is up by 4.8% on the back of positive news of the price hike taken by the company.

Gujarat gas has taken a price hike for the industrial segment and for CNG as international gas prices have increased significantly in the last 2 months. Currently, international gas (Henry Hub) is $3.94 per MMBTU  up by 18% in the last 2 months as we have seen a strong recovery in the international market after the hit in 2020 due to the covid pandemic. Gujarat gas has increased price by Rs4 per SCM for the Industrial segment and Rs 2 per Kg for commercial and CGDs. 

This is positive news for Gujarat Gas, this price hike will help the company to maintain its EBITDA margins in upcoming quarters. We don't expect any big impact on volumes of the company as alternatives to gas like petrol, diesel, pet coke prices are already up in the domestic market. We have a neutral view of Gujarat Gas. 

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