Citi upgrades GSPL to 'Buy', targets 19% upside

Citi has upgraded its rating on Gujarat State Petronet (GSPL) from 'Sell' to 'Buy' as of March 17, setting a target price of Rs 325 per share, which suggests a 19% increase from current levels. The upgrade follows GSPL's receipt of regulatory approval for the Anjar-Palanpur pipeline project, which will enhance gas transportation in Gujarat. The project requires a capital investment of Rs 2,100 crore and is expected to be completed in three years. The new pipeline will increase GSPL's gas grid capacity to 45 million metric standard cubic meters per day. It will also connect the Mundra LNG terminal to GSPL’s existing pipeline, addressing current capacity limitations.