Gujarat Gas Co Ltd

CMP: 440

Gujarat Gas Company Limited distributes natural gas, in addition to operating two LPG bottling plants. The Company also has a subsidiary providing financial services.

Gujarat Gas is an excellent buy in mid-cap space. Its currently trading at a P/E of little over 18 with excellent dividend yields of 2.71% in the last 12 months. Minimal liabilities. Revenues have grown from 825 Crores to 1846 Crores in the last 5 years. Profits have grown more from 89 Crores to 258 Crores in the same period. NPM has grown smartly from less than 11% to 14% over 5 years. Its a wealth builder. Buy and hold for long term gains.