View 15 reports from 8 analysts offering long term price targets
for GAIL (India) Ltd..
GAIL (India) Ltd. has an average target of 181.29. The consensus estimate
represents an upside of 37.86%
from the last price of 131.50.
- This broker has downgraded this stock from it's previous report. (eg. - Buy->Hold)
- Broker has maintained previous recommendation but reduced share price target.
- This broker has upgraded this stock from it's previous report.(eg. - Sell->Hold)
- Broker has maintained previous recommendation but increased share price target.
Voltas: Voltas' Q1FY23 saw a mixed bag performance. UCP revenue was in line with market share recovery in RAC, while segment margin saw a miss (seen industry-wide). EMPS continued to disappoint, by missing both on revenue and margin. UCP delivered a 125/111% value/volume YoY growth (HSIE 123%), with the three-year CAGR at 8%. Voltas also regained some of its market share, which touched 24% (June exit) vs 19% earlier (March exit), a market share lead of 950bps over the No. 2 player. Voltas is also a leader in the inverter segment (earlier dominated by LG), with the market share at 22%, 300bps higher than LG. Despite increasing competition, we believe Voltas' core strength (after sales service, distribution network, etc.) will continue to support its market share. RAC is Voltas' core business (unlike for other players); we believe an aggressive and proactive approach will continue to bring efficiency and competitiveness in the long run. UCP EBIT margin saw pressure (7.7% vs. HSIE 9%); with commodity softening and easing trade inventory, we expect recovery in EBIT margin. We model 11% EBIT margin for FY24/25. Performance of project business remained weak and we do not expect immediate relief (although we model 6% EBIT margin for FY24/25). We cut our EPS estimates by 17/6/3% (largely to offset weak performance of project business) for FY23/24/25. We value the stock on SoTP (UCP/EMPS/EPS P/E at 43/10/15x and Volt-Beko P/S of 4x) on Jun-24 to derive a TP of INR 1,050. Maintain ADD. Gujarat State Petronet: Our ADD rating on Gujarat State Petronet...
GAIL has reported a second successive quarter of robust operational growth in Q1FY23, with EBITDA of Rs43.6bn (up 81% YoY, 18% QoQ, 11% above estimates) and PAT of Rs29.1bn grew 91% YoY and 9% QoQ. Beat on operational front vs ISec estimates was driven by i) stronger trading segment EBIT and ii) marginal beat on transmission volumes, offset by weaker petchem volumes/margins and weak LPG volumes.
TTK Prestige: TTK Prestige's Q4FY22 revenue was a beat while EBITDA margin was a miss. Standalone revenue was up 17% YoY (HSIE 7%) and delivered a three-year CAGR of 13%. The revenue growth was driven by a strong performance in cookers, which were up 26% YoY (17% three-year CAGR). Gross margin contracted 501bps YoY to 40.6% (HSIE 43%). The company had taken some price hikes in Q4-end, the impact for which will be visible in the coming quarters. Tight cost control restricted the fall in EBITDA margin, which was at 16.3% (HSIE 16.9%), down 213bps YoY. EBITDA was up 3% YoY to 1,058mn (HSIE 1,002mn). The company has managed to protect its EBITDA margin in FY22 (consolidated margin at 15.6%); however, we expect the margin to trend downwards in FY23. We model single digit growth for cooker on sustainable basis, given this product is highly penetrated (90% urban penetration). We model 10% revenue CAGR between FY19-24E at company level. We project FY23/24 EBITDA margin at 14.7/15.1% (14.9/15.6% for FY21/FY22). We maintain our FY23/24 EPS estimates and value the stock at 38x P/E (40x earlier) on FY24E EPS to derive a TP of INR 1,000. Maintain ADD. Radico Khaitan: Radico reported a beat on revenue, but EBITDA margin/growth was a miss. Net revenue growth was at 18%, a beat on our estimate of 12%, led by strong performance in P&A and Popular. The three-year revenue CAGR was at 17% vs. 3% posted by UNSP. P&A volume grew 28% (HSIE 23%) to 2.27mn cases, with the three-year CAGR...
GAIL is expected to deliver strong growth in the medium-term on the back of steady demand and with prices expected to remain elevated. We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 180 based on SOTP valuation methodology. GAIL registers significant topline gains on volume growth During Q3FY22, standalone revenue surged 66.8% YoY to Rs. 25,776cr (+19.8% QoQ), owing to better spreads in the gas marketing and transmission segment, along with better prices derived from the overall petrochemical product sales. EBITDA increased...
trends in 9M and higher LPG realization. We also increase FY23/24E earnings to factor in higher petrochemicals prices. GAIL reported strong results with EBIDTA and PAT of Rs42.2bn (+22%QoQ; PLe Rs41.8bn) and Rs32.9bn...
Aditya Birla Capital: As outlined in our Initiation note, Aditya Birla Capital (ABCL) continues on its journey towards a credible makeover, driving consolidated return ratios closer to franchise potential over the next three years. We believe that ABCL is steadily repositioning its lending businesses towards retail and granular loans (58% of NBFC AUM towards Retail + SME + HNI; 29% of HF AUM towards affordable housing), likely to reflect in sustained improvement in franchise earnings. Although Q1FY22 was weak for insurers in general, we draw comfort from both of ABCL's insurance businesses steadily building their profitability trajectory (VNB margins +300bps YoY to -1.6% on account of better mix and all-time low loss ratios (40%) in the health insurance business). Deepak Nitrite: We maintain SELL on Deepak Nitrite with a price target of INR 1,600 (WACC 11%, terminal growth 4.5%). The stock is currently trading at 24.2x FY23E EPS. We believe that (1) further growth in DPL is capped as the Phenol plant is already running at over 110% utilisation since Q2FY21 and (2) IPA prices would fall as demand normalcy returns. Besides, DNL is entering into challenging chemistries vis-a-vis chemistries it is currently operating in. The fluorination and photochlorination chemistries will pave the way to tap agrochemical and pharmaceutical customers for the company. However, the company needs to demonstrate its competencies well over the period in these chemistries to seize business opportunities. EBITDA/APAT were 11/11% above estimates, owing to lower-than-expected raw material costs, lower-than-expected operating expenses, and higher-than-expected other income. Escorts: Escorts Q1FY22 PAT, at INR...
GAIL reported an EBITDA in line with our estimate, as better performance in Gas Trading and LPG and Liquid HC business offsets lower profitability in the Petchem segment (impacted due to the planned shutdown in 1QFY22). The management guided that the Petchem plant is currently operating at...
Given strong balance sheet and FCFs, overall performance to continue to outshine. Customer base to widen with new projects along with improvement in Gas business. Hence, we reiterate our BUY rating on the...
Gas transmission volumes flat; trading outlook encouraging Gas transmission segment volumes were flat YoY at 109.8 mmscmd in line with estimate. Transmission volumes are expected to improve driven by industrial/commercial demand post commissioning of pipelines. In the short term, volumes in the current quarter (Q1FY22E-TD) fell 10-15% in April, May and recovered in June. Hence, we revise estimate and expect volume at 112.7 mmscmd, 123.5 mmscmd in FY22E, FY23E, respectively, mainly due to additional domestic gas from newer fields. Gas transmission EBIT at...
Star Cement: Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However, EBITDA declined 16% YoY to INR 1.04bn due to significant cost inflation. Lower tax rate moderated APAT (at INR 853mn) decline to 1% YoY. We expect margin to expand FY22 onwards on production ramp-up. We maintain our BUY rating with a revised our target price of INR 125 (8x FY23 consolidated EBITDA). GAIL (India): Our BUY recommendation on GAIL with a price target of INR 195 is based on 9% CAGR expansion in gas transmission volume over FY21-23E to 124mmscmd on the back of (1) increase in domestic gas production, (2) increase in demand of RLNG, and (3) completion of major pipelines in the eastern and southern parts of India. 4QFY21 EBITDA/APAT were 7/7% below our estimates owing to higher-than-expected raw material cost and operating expenses, offset by an 8% rise in revenue and lower-than-expected finance cost and tax outgo.
Improving commodity price outlook in a post Covid world to drive earnings. petrochemicals and LPG realization. Sharp recovery in commodity prices innew pipelines over next one year will augment volumes and profits. We had put the rating under review after a sharp run up in stock prices and now have...
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