Gujarat Gas jumps 8% after Nomura upgrade in 2026

What moved the stock on Friday

Gujarat Gas Ltd shares rallied on Friday after international brokerage Nomura upgraded the stock to ‘Buy’ from ‘Reduce’. The upgrade came on expectations of improving demand visibility, particularly in the company’s key industrial markets. In afternoon trade, the stock was reported at Rs 362.05, up 7.9%, and was the top gainer on the BSE Midcap index.

The move drew attention because the stock has been under pressure for much of the year. The article notes Gujarat Gas shares had declined nearly 17% in 2026 and were down more than 21% over the past year. Friday’s jump, therefore, was also read as a reaction to a valuation reset after a recent correction.

Nomura’s upgrade and target price

Nomura’s call was described as a double-upgrade from ‘Reduce’ to ‘Buy’. The brokerage kept its target price unchanged at Rs 390 per share on a DCF basis. That target implied an upside of over 16% from the previous closing level cited in the report.

The stated driver for the upgrade was better demand visibility in Gujarat Gas’s core industrial segment. Nomura pointed to an expected recovery in a key pocket of industrial gas consumption in Gujarat, suggesting that volumes could improve as fuel economics shift.

Morbi ceramic cluster: propane-to-gas switch in focus

A key part of the Nomura thesis was the Morbi ceramic cluster in Gujarat. According to the report, a shift from propane to natural gas is expected to support Gujarat Gas volumes in this region. Morbi is a major ceramics manufacturing hub, so changes in fuel mix can materially affect gas demand.

The story also referenced that Morbi ceramic makers plan price hikes to offset higher fuel costs. While the article does not quantify the planned increases, it connects the move to the broader cost environment that influences fuel choices. For city gas distributors, a sustained shift to natural gas from alternative fuels can improve volume visibility, especially when industrial offtake is sensitive to relative fuel prices.

Middle East disruption and gas supply worries

The report linked the stock’s broader weakness to the ongoing conflict in the Middle East, which disrupted the Strait of Hormuz, described as a critical global trade route. The disruption was cited as a trigger for a gas supply crunch, which in turn weighed on sentiment for gas-linked names.

This context matters because imported LNG dynamics often influence domestic gas availability and price competitiveness versus substitute fuels. The article attributes part of the market’s caution in 2026 to supply-related uncertainty stemming from geopolitical disruptions.

Mixed tape on the day: price points mentioned

The provided feed includes multiple price snapshots for Gujarat Gas across different contexts. Apart from the BSE Midcap reference at Rs 362.05 (+7.9%), it also contains “Spotlight” entries noting the stock at Rs 401.35 (+2.65%) on the NSE and another instance at Rs 426.7 (+1.52%) at 12:49 IST. A separate market-data section lists a last traded price of Rs 480.80 versus a previous close of Rs 467.55.

These varying figures appear to be from different updates and do not all refer to the same moment in time. Still, taken together, they show the stock has seen sharp, event-driven moves and has traded across a wide range during the period referenced.

What other brokerages are saying

Beyond Nomura, the feed lists multiple brokerage views on Gujarat Gas:

• JM Financial: reiterated Buy with a target price of Rs 535, citing potential moderation in spot LNG prices amid rising global LNG supply and improved competitiveness versus propane, along with CNG expansion into new areas.
• Motilal Oswal Financial Services: reiterated Buy with a target price of Rs 485, citing long-term volume growth driven by the addition of new industrial units and expansion of existing ones.
• Morgan Stanley: reiterated Overweight with a target price of Rs 614 (the note is linked to a separate update that followed a CNG price increase).

The feed also includes a separate snippet stating: “Nomura maintains reduce on Gujarat Gas, targets Rs 470, implying 13% downside from a CMP of Rs 540.55.” This appears to be from a different time than the upgrade story, but it highlights how broker positioning has varied across reports and periods.

Financial snapshot cited in the feed

The data section in the provided material includes consolidated annual financials (all figures stated in INR crore). For FY 2024, Gujarat Gas reported total revenue of 15,796.30 crore, down 6.31%, with PAT of 1,143.70 crore, down 25.17%. It also notes “topline contraction” and that revenue contracted for the first time in the last three years.

Separately, another snippet says Gujarat Gas shares jumped over 5% as Q4 net profit rose 29.6% QoQ to Rs 287 crore (reported alongside Q4 FY25 results).

Key numbers table

Market impact and what investors are tracking

Friday’s reaction shows how quickly sentiment can change when a large brokerage reframes demand visibility for an industrial-heavy city gas distributor. The Morbi cluster is central to this narrative because industrial volumes are typically more sensitive to fuel substitution. If ceramic units move from propane back to natural gas, it can support utilisation and improve near-term visibility, which is what Nomura highlighted.

At the same time, the article’s context on the Strait of Hormuz disruption underscores that supply-side risks remain a live variable for gas markets. Investors are likely to watch how fuel economics evolve relative to propane, and how downstream users manage costs, especially when manufacturers signal price hikes to protect margins.

Conclusion

Gujarat Gas’s nearly 8% jump followed Nomura’s upgrade to ‘Buy’ and its Rs 390 target, built around demand recovery expectations in Morbi as the cluster shifts from propane to natural gas. With the stock having fallen sharply over the past year and in 2026, the upgrade and the focus on industrial volumes have become key near-term reference points. Further brokerage commentary and upcoming results updates are likely to remain catalysts as the market reassesses demand visibility and gas supply conditions.