Broker's call: Gujarat Gas (Buy) | Updated on CMP: ₹484.85 Gujarat Gas has proved to be a clear outperformer since the curbing of polluting fuels at Morbi – an impetus by the government toward the adoption of greener fuel. Since our upgrade in Dec’19, the stock is up 116 per cent – it has outperformed the Nifty by about 95 per cent – despite which the stock trades at 21x FY23E EPS currently. Interestingly, we have upgraded our EPS every quarter since then (from ₹12.3 to ₹19.9 for FY22) on the back of better-than-expected volume growth. Gujarat Gas has clocked volume growth of about 8 per cent q-o-q each time since Q1FY20 – despite the Covid-led disruption witnessed in H1-FY21. Over the past five years, the company has posted a volume CAGR of about 11 per cent; we build in the same volume growth over the next two years as well.