Stock Review: GSPL

The Gujarat State-owned natural gas transporter, GSPL, owns nearly 1,700 km of pipeline network and is planning to add another 1,000 km within three years. A consortium led by GSPL has bid for trunk pipeline projects of around 4,000 km. The company has created and is expanding key infrastructure in natural gas transportation. When growing big, the only major concern is whether domestic availability of gas will be able to match the capacities created, which has weighed on the company's valuations of late. However, this is mainly a short-term concern. As the domestic natural gas production grows in the medium to long term, GSPL's infrastructure will play a key role in connecting suppliers and consumers.