Is Gujarat Gas the Best Stock in Its Sector? A Look at the Numbers

Is Gujarat Gas the best stock in its sector? The stock trades on the NSE at Rs 224 as of 16 October 2026, within its 52-week range of Rs 218.95 to Rs 443.75. The sections below cover the business, the key ratios, a peer comparison and a closer look at valuation.

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About Gujarat Gas

Gujarat Gas Ltd is a city gas distribution company that supplies piped natural gas and compressed natural gas across several regions. It serves households, commercial users, industries and vehicles, and some data platforms now show the company under the name Gujarat Energy following a reported amalgamation, so the name on a quote screen may differ. At a market capitalisation of Rs 21,026 Cr, it is tracked as part of the Gas Distribution sector on Univest.

Is Gujarat Gas the Best Stock in Its Sector?

Gujarat Gas makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, backed by its return on equity. Gujarat Gas' 12.33x P/E is below the 14.38x Industry P/E, though above Bharat Petroleum Corporation at 7.32x and Chennai Petroleum Corporation at 5.51x, while its 10.95% ROE is lower than Bharat Petroleum Corporation at 25.80% and Chennai Petroleum Corporation at 27.93%, and its debt to equity ratio of 0.18 is below Bharat Petroleum Corporation at 0.54, and in line with Chennai Petroleum Corporation at 0.18.

Metric	Gujarat Gas
CMP (NSE)	Rs 224.01
52-Week High / Low	Rs 443.75 / Rs 218.95
Market Cap	Rs 21,026 Cr
P/E (TTM) vs Industry P/E	12.33x vs 14.38x
P/B	1.14
ROE	10.95%
EPS (TTM)	Rs 18.18
Dividend Yield	1.34%
Debt to Equity	0.18

Compare Gujarat Gas Against Other Gas Distribution Sector Stocks

How Gujarat Gas Compares Against Its Gas Distribution Sector Peers

The table below sets Gujarat Gas against 2 other Gas Distribution sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
Gujarat Gas	21,026	12.33	10.95%	0.18
Bharat Petroleum Corporation	1,25,470	7.32	25.80%	0.54
Chennai Petroleum Corporation	23,014	5.51	27.93%	0.18
Peer average (2 companies)	-	6.42	26.87%	0.36

Measured against the peer averages, Gujarat Gas' P/E is 92 percent above the 6.42x average, and its ROE is 15.92 percentage points below the 26.87% average. An average of just two companies is a rough guide, so treat the gap as a pointer for further research and not as a verdict.

What Makes Gujarat Gas Worth Watching in Gas Distribution

• Scale: At Rs 21,026 Cr, its market capitalisation is smaller than Bharat Petroleum Corporation (Rs 1,25,470 Cr) and Chennai Petroleum Corporation (Rs 23,014 Cr), which is a useful reminder that the peers differ in size as well as in valuation.
• Sector drivers: Growth in piped gas connections and CNG vehicles, and the cost of gas that it buys, influence volumes and margins.
• Key risk: The share has fallen to near its 52-week low, and because of the reported amalgamation, trailing figures may not fully reflect the enlarged business.

Gujarat Gas Valuation: Is It Justified?

At a P/B ratio of 1.14, the market pays about Rs 1.14 for every rupee of book value, and the EPS (TTM) of Rs 18.18 is the earnings base behind the P/E. The stock trades about 50 percent below its 52-week high and about 2 percent above its 52-week low. The dividend yield of 1.34% is a modest income component, so returns depend mainly on the share price. As with any single stock, investors should weigh these figures against their own valuation discipline and risk appetite rather than the sector label alone.

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Download the Univest iOS App or Univest Android App to track Gujarat Gas and other Gas Distribution sector stocks.

How to Track Gujarat Gas Before You Invest

Before deciding whether Gujarat Gas deserves its label as the best stock in its sector for your own portfolio, compare it directly against Gas Distribution sector peers using the steps below.

1. Open the Univest Screener and search for Gujarat Gas to view live price, valuation ratios, and peer comparisons within the Gas Distribution sector.
2. Compare its P/E, P/B, and ROE against other Gas Distribution sector stocks before deciding if the current valuation fits your strategy.
3. Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
4. Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

Gujarat Gas gives investors a clear set of numbers to work with, from returns and valuation to leverage and peer standing. Whether it earns the label of best stock in Gas Distribution depends on how much weight you give each of them and on how the business executes from here. Because the stock trades below its sector benchmark, the open question is whether earnings growth will close that gap or whether the discount is deserved. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Is Gujarat Gas the best stock in its sector?

Ans. There is no single definitive answer, because the best stock in a sector depends on whether an investor is prioritising returns, valuation or balance sheet strength. Gujarat Gas has a 10.95% ROE and trades at 12.33x P/E against a 14.38x Industry P/E. Against the 2 peers compared in this article, its ROE is below the 26.87% peer average and its P/E is above the 6.42x peer average. Its debt to equity ratio of 0.18 is below the 0.36 peer average, which matters because borrowing can inflate returns and add risk when business conditions weaken. These figures are best read together rather than in isolation, and they work as a starting point for your own research and not as a verdict.

What is the current share price of Gujarat Gas?

Ans. Gujarat Gas was trading at Rs 224.01 on the NSE as of 16 October 2026, and its 52-week range runs from Rs 218.95 to Rs 443.75. That leaves the share price 50 percent short of the 52-week high and 2 percent clear of the 52-week low. Its market capitalisation is Rs 21,026 Cr and its EPS (TTM) is Rs 18.18, which is the earnings figure behind the 12.33x P/E. Share prices change through the trading day, so check the live quote on Univest before acting on any number here.

What sector does Gujarat Gas belong to?

Ans. Gujarat Gas is classified under the Gas Distribution sector on Univest, and that group of listed companies is the reference point for the 14.38x Industry P/E used in this article. The 2 named peers compared here are Bharat Petroleum Corporation and Chennai Petroleum Corporation, chosen as comparable listed names so that the P/E, ROE and debt figures come from the same live data source. Investors who want a wider view can compare more Gas Distribution sector stocks on the Univest Screener, since no two companies in a sector have exactly the same business mix.

How does Gujarat Gas compare to its sector peers on P/E?

Ans. Gujarat Gas' P/E of 12.33x is above the 6.42x average of the 2 named peers, with Bharat Petroleum Corporation at 7.32x and Chennai Petroleum Corporation at 5.51x. It also sits below the 14.38x Industry P/E, which is the benchmark for the wider Gas Distribution sector. A P/E that is above a peer average can reflect a valuation discount or premium, but it can also reflect different growth or return expectations, so it should be read alongside ROE and debt. Its P/B ratio of 1.14 gives one more view of how the market values its book value.

What is Gujarat Gas' return on equity?

Ans. Gujarat Gas reported a return on equity of 10.95%, which is below the 26.87% average of its named peers, with Bharat Petroleum Corporation at 25.80% and Chennai Petroleum Corporation at 27.93%. ROE shows how much profit a company generates on every rupee of shareholders' equity, so a higher figure generally points to more efficient use of capital. ROE is easier to trust when leverage is modest, and here the debt to equity ratio is 0.18 against a peer average of 0.36. It is worth checking whether the ROE has been stable over several years rather than relying on a single reading.

Should I invest in Gujarat Gas based on its sector position?

Ans. Sector position is only one input into an investment decision. Gujarat Gas has a 10.95% ROE and a 12.33x P/E, which make it worth researching further, and its dividend yield is 1.34%. You should also weigh its business outlook, earnings consistency, debt levels, your investment horizon and your own risk appetite before buying. Spreading money across several stocks and sectors reduces concentration risk, and this article is educational content, not investment advice. For personalised guidance, consult a SEBI-registered advisor.