Did you know this low beta energy stock jump nearly 8 per cent intraday?

There is a huge potential for further growth in energy service demand in India due to a growing economy and the forces of urbanisation and industrialisation.

While BSE Energy index rose by 2.29 per cent since the onset of June 2021, the shares of a Gujarat-based natural gas transmission company skyrocketed by around 11 per cent for the same period of time.  

Trading close to its 52-week high, the shares of Gujarat State Petronet Ltd surged around 7.61 per cent on Friday after the company reported strong Q4FY21 results. Its consolidated total income rose by 19.18 per cent to Rs 3,852.49 crore in the quarter ended March 2021, compared to Rs 3,232.26 crore registered for Q4FY20. Net profit was up by 16 per cent to Rs 577.50 crore in Q4FY21 from Rs 497.67 crore reported in Q4FY20.   

GSPL also approved the transfer of its city gas distribution business for Amritsar and Bhatinda geographical area on a slump sale basis to Gujarat Gas Ltd for an aggregate cash consideration of Rs 163.31 crore.  

The company’s board of directors also recommended a dividend of Rs 2 per share of Rs 10 each for FY2020-21.  

Energy stocks have been on a buzz lately. Improving oil prices led to a smooth rally in energy stocks during this week. Further, there is a huge potential for further growth in energy service demand in India due to a growing economy and the forces of urbanisation and industrialisation.