Synopsis: Rudra Gas’ stock jumped 18% as it teamed up with the Gujarat state administration through the signing of an MoU to foray into the biogas sector with a proposed investment of Rs 30 crore. The impact of the venture on earnings will be medium term, with the operations of the entity expected from 2027.
The shares of this company, which is active in gas distribution network projects, fibre cable networks, construction equipment, and vehicle rental, had its shares in focus after the company announced its foray into the biogas segment by signing an MOU with the Government of Gujarat.
With the market cap of Rs 62 crore, the shares of Rudra Gas Enterprise Ltd skyrocketed 18% after reaching a high at Rs 75, compared to its previous day’s closing price of Rs 63.5. The shares are trading at a PE of 9.5, whereas their industry PE is at 17.6.
MOU
The MoU signed between Rudra Gas Enterprise Ltd and the Government of Gujarat, in fact, marked a strategic entry into the biogas segment as an alignment with India’s broad approach toward clean energy and waste-to-energy. The proposed investment of Rs 30 crore decides upon a conscious move in building long-term asset-backed capabilities rather than staying purely service- or trading-orientated.
Execution risk appears to be relatively moderate, as the Government of Gujarat will facilitate approvals and regulatory clearances, which are often key bottlenecks in green energy projects. This institutional support improves project visibility and reduces uncertainty around timelines, even though the project is still at a proposal stage.
Financially and from a market viewpoint, the project is medium-term in nature, as operations are likely to start in 2027, and hence, it will have a limited near-term earnings impact. However, the proposed employment generation of approximately 125 people and the thrust on biogas place Rudra Gas in a position for sustainable growth and policy-backed opportunities as India speeds up its renewable energy transition.
The revenue from operations for the company stood at Rs 50 crores in H1 FY26 compared to H1 FY25 revenue of Rs 40 crores, up by about 25 per cent YoY. However, the net profit stood the same at Rs 3 crore in H1 FY26 and H1 FY25.
The clientele reveals extensive credibility and penetration in the gas distribution and energy value chain in India. The company has good clientele in the form of leading city gas distributing and utility firms like Gujarat Gas, Mahanagar Gas, Torrent Gas, Think Gas, Sabarmati Gas and Rajasthan State Gas and other large PSUs and large groups like IndianOil, HPCL, Adani Group, and Indian Oil-Adani Gas. This indicates pervasiveness in the clientele, robust compliance, and execution feasibility, making the firm a preferred choice in the gas infra sector, which is compliant and capital-intensive.
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