GAIL shares: Buy GAIL (India), target price Rs 180 : HDFC Securities

Securities has a call to buy on GAIL (India) with a target price of Rs 180. The current market price of (India) Ltd. is Rs 134.05. The period given by the analyst is one year when the price of GAIL (India) Ltd. can achieve the set goal.

GAIL (India) Ltd., incorporated in 1984, is a large capitalization company (having a market capitalization of Rs 59570.40 Crore) operating in the oil and gas sector.

The main product/revenue segments of GAIL (India) Ltd. includes natural gas, polymers, service sales, propane, other operating revenue, compressed natural gas (CNG), electricity, crude oil and telecommunications revenue for the year ending March, 31st. 2021.


For the quarter ended 30-06-2022, the company reported consolidated total revenue of Rs 37,987.96 Crore, up 37.35% from last quarter, total revenue of Rs 27,657.93 Crore and up up 114.80% from the same quarter last year, total revenue of Rs 17,685.24 Crore. The company reported a net profit after tax of Rs 2923.37 Crore last quarter.

Investment rationale
The BUY recommendation on GAIL with a target price of INR 180 is based on the expansion of gas transport volume in FY 22-24E to 126 mmscmd on the back of (1) increased production of domestic gas, (2) increased demand for RLNG, and (3) completion of major pipelines in eastern and southern India. Q1FY23 EBITDA/APAT at INR 44/29 billion exceeded estimates mainly due to higher than expected transmission and marketing volumes and higher marketing margins.

Promoter/Fii Holdings
The promoters held 51.89% of the company’s capital as of June 30, 2022, while the FIIs held 19.92% and the DIIs 15.29%.

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