Gujarat Gas Limited (GGL) is India’s largest city gas distribution (CGD) company, playing a pivotal role in the country’s clean energy transition. As a government-owned entity under the Gujarat State Petroleum Corporation (GSPL), it supplies Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) across Gujarat. With rising urban demand for cleaner fuels and strong policy support, investors are keenly watching GGL for its long-term growth potential. This article examines Gujarat Gas’s fundamentals, sector outlook, and analyst sentiment to estimate a realistic share price target for each year from 2026 through 2030.
Incorporated: 1980 (formerly GSPC Distribution Networks Ltd.)
Business: City Gas Distribution (CGD) – supplies CNG for vehicles and PNG for domestic, commercial, industrial, and non-commercial consumers.
Geography: Operates across South & Central Gujarat and Saurashtra, with a licensed area of ~96,000 sq. km and over 800 CNG stations [[12], [17]].
Ownership: A government company under Section 2(45) of the Companies Act, 2013, with Gujarat State Petroleum Corporation (GSPL) holding ~54% and total promoter holding at 60.89% [[23], [25]].
Listed?: Yes – on both BSE (539336) and NSE (GUJGASLTD).
Gujarat Gas: Key Financial Snapshot (as of Jan 2026)
Metric
Value
Market Capitalization
₹29,304.77 Cr
Current Share Price
₹425
52-Week High / Low
₹509 / ₹360
P/E (TTM)
25.25
P/B (TTM)
3.28
Book Value (TTM)
₹129.70
EPS (TTM)
₹16.86
ROE
14.19%
ROCE
19.80%
Dividend Yield
1.37%
Debt
₹0 Cr (almost debt-free)
Cash Reserves
₹359.40 Cr
Sales Growth (YoY)
5.08%
Profit Growth (YoY)
0.24%
Shareholding Pattern
Category
Holding (%)
Promoters
60.89%
Domestic Institutions (DII)
22.07%
Public (Retail)
13.22%
Foreign Institutions (FII)
3.82%
Others
0%
Note: High promoter holding and strong DII participation reflect institutional confidence.
Gujarat Gas Share Price Target Forecast (2026–2030)
Based on fundamentals, sector tailwinds, historical valuation trends, and consensus analyst estimates, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹460 – ₹530
2027
₹500 – ₹600
2028
₹550 – ₹680
2029
₹600 – ₹750
2030
₹650 – ₹820
Gujarat Gas Share Price Target 2026
Year
Target 1
Target 2
2026
₹460
₹530
Rationale: Near-term growth is supported by steady volume expansion in CNG/PNG and strong cash flows. However, flat profit growth (0.24%) and high base effects limit upside. Analysts’ 1-year median target is ₹463–₹497 [[8], [9]].
Gujarat Gas Share Price Target 2027
Year
Target 1
Target 2
2027
₹500
₹600
Rationale: Expected recovery in sales growth and margin stability could justify a P/E of 26–28x. Expansion into new CGD zones may begin contributing meaningfully.
Gujarat Gas Share Price Target 2028
Year
Target 1
Target 2
2028
₹550
₹680
Rationale: By 2028, national gas infrastructure (e.g., PNG penetration, EV-CNG hybrid push) should boost demand. ROCE sustainability (~20%) supports premium valuation.
Gujarat Gas Share Price Target 2029
Year
Target 1
Target 2
2029
₹600
₹750
Rationale: Long-term energy transition policies and urbanization will drive consistent volume growth. If profit growth reaccelerates, multiples could expand.
Gujarat Gas Share Price Target 2030
Year
Target 1
Target 2
2030
₹650
₹820
Rationale: As a market leader in CGD, GGL is well-positioned to benefit from India’s 15% gas-in-energy-mix target by 2030. Debt-free balance sheet and dividend consistency add defensive appeal.
Strengths vs Risks
✅ Strengths
Monopoly-like position in Gujarat’s CGD market.
Zero debt and strong operating cash flows.
Government backing ensures regulatory and land-access advantages.
Consistent dividend payer (payout ratio ~33%).
⚠️ Risks
Sluggish profit growth despite revenue expansion.
Natural gas price volatility (linked to global LNG/RLNG prices).
Regulatory risk: Tariff revisions depend on PNGRB approvals.
Competition: New entrants in adjacent states may pressure margins in the long term.
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (Large-cap PSU)
Time Horizon
Long-term (5+ years)
Volatility
Low-to-moderate
Dividend/Income
Yes (1.37% yield + stable)
Ideal Investor
Conservative, income-focused, ESG-aligned
FAQs
It distributes CNG (for vehicles) and PNG (for homes & industries) – not LPG.
Yes – it’s a state-government-owned company under the Government of Gujarat.
Yes – on BSE & NSE under ticker GUJGASLTD.
As of early 2026, ₹425/share and ₹29,300+ Cr market cap.
Yes – 1.37% yield, with a 33% average payout ratio.
Urban PNG penetration
CNG vehicle adoption
The government’s National Gas Grid expansion
Based on fundamentals and analyst consensus, a realistic range is ₹460–₹530.
Final Verdict
Gujarat Gas Limited is a high-quality, debt-free PSU with a defensive business model and exposure to India’s clean energy shift. While near-term profit growth is muted, its market leadership, pricing power, and policy tailwinds make it a solid long-term compounder. Our 2026–2030 price targets (₹460–₹820) reflect steady, not explosive, growth – suitable for conservative investors seeking stability and dividends, not multibagger returns.
📌 Disclaimer: Targets are model-based estimates, not guarantees. Always consult a SEBI-registered advisor before investing.
