on November 6 announced a strategic collaboration with Italy-based Snam, Europe’s leading gas infrastructure company. Further, a non-binding agreement was signed between Snam and Adani Gas [a joint venture company of Adani Group and Total of France] to create a JV for setting-up a compressed natural gas (CNG) compressors manufacturing facility in India.
This would help in promoting the development of refueling infrastructure for sustainable mobility and fostering the use of natural gas, as envisioned by the Government of India, reports suggest. Consequent to induction of TOTAL Holdings SAS as joint promoter of the company, the board has approved change of company name from Adani Gas to Adani Total Gas.
Adani Gas is one of India’s leading private players in developing City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to Industrial, Commercial, Domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector. In November, the company has signed a definitive agreement for the acquisition of the business undertaking pertaining to city gas distribution and retail sale of CNG that is being undertaken in geographical areas of Jalandhar, Ludhiana, and Kutch (East).
Analysts at ICICI Securities have a positive outlook on the stock from a long-term perspective. The company, they believe, is well poised to benefit from India’s growing CGD sector.
"The continued strong capex in existing, new GAs along with favourable regulatory scenario is expected to lead to long term stable volume growth. With lower domestic gas & global LNG prices, the company is comfortably placed on margins front and also enjoys competitive advantage against other fuels. Its plan to develop integrated CGD model and auto fuel retailing under the JV Total Adani fuels marketing will also lead to creation of long term shareholder value," the brokerage said.
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