Gujarat Gas Ltd stock is in focus after the government raises the import duty on propane used for commercial purposes. The new import duty stands at 19.25%, a substantial increase compared to the previous rate of 2.75%.This development is expected to result in a price hike of approximately Rs 5-6 per standard cubic meter (scm) for propane in Morbi region. Consequently, this increase in price will neutralise the cost advantage that propane previously enjoyed over Gujarat Gas. Prior to the implementation of the import duty, propane was priced at around Rs 32-33/scm, while Gujarat Gas was priced at Rs38.6/scm.The propane prices for August are expected to drop to $400 per tonne versus $450/tonne for July 2023. Propane is the biggest competing fuel for Gujarat Gas in the Morbi region.In Q4, Gujarat Gas reported a fall in net profit by 16 percent year on year to Rs 369 crore, compared to Rs 444 crore in the corresponding period last year.Revenue from operations for the January-March quarter came in at Rs 4,073.82 crore, declining 14 percent YoY. However, sales volume increased 22 percent to 8.86 mmscmd. The 12-month consensus target on the stock is Rs 557.50. This represents an upside of 13 percent from the current level.