CMP: 110

Gujarat State Petronet Limited owns and operates a natural gas transmission network in India. The Company serves the State of Gujarat and most of its customers are natural gas end-users.

Gujarat State Petronet is a good bet in mid-cap space. Its currently trading at a P/E of little over 11 with decent dividend yields of close to 1%. Manageable liabilities. Revenues have grown steadily from 263 Crores to 1000 Crores in the last 5 years. Profits have grown from 47 Crores to 413 Crores backed by strong NPM growth in the same period. NPM has rocketed from 17% to 43% over 5 years. The growth continues in FY12 also and is a good buy for long term.