GAIL (India) Ltd. share price target

Gail had made an announcement on bonus shares on February 12, 2018. The ratio was one bonus share for every existing equity share i.e. 1:3. The stock has turned ex-bonus today while the record date for the same is March 29, 2018. Consequently, Gail's share price, as per yesterday's closing price, has dropped to | 318/share from | 424/share. Hence, now our target price also stands revised to | 383/share post bonus issue of equity shares....

PAT at Rs 12.6 bn was in line with our estimate. Gas transmission volume stood at record 109 mmscmd on continued higher offtake from power sector and higher spot demand from fertilizer sector. Trading business EBIT was hit by seasonally higher gas cost.

GAIL (India) Ltd Q3FY18 results comment Revenue rose by 16.15% to Rs. 14414.34 Cr in Q3FY18 when compared to the previous quarter. Also, it increased by 18.81% when compared with Q3FY17.

OPM of the company fell 60 bps to 13.7% in Q3FY'18 compared to Q3FY'17 leading to 14% Employee benefit expense rose 60 bps to 2.8%. Other expenses rose 10 bps to 8.8%. Other income was up 10% to Rs 302.74 crore. As a result PBDIT increased 14% to 2272.62...

The company would bring almost 50% (~2.25mmt) of US contracted LNG to India in FY19 while 0.7mmt from Gazprom, Russia. We roll over our TP to FY20 gives a new TP of Rs514. We downgrade the stock to ACCUMULATE from BUY. Key Highlights and Investment Rationale Strong volume growth across segment was offset by lower margins Gas transmission/trading/Petchem/LHC volume increased 6.3%/5.9%/23.7%/10.8% to 109mmscmd/88mmscmd/188KT/328KT respectively. However, lower margin from transmission and petchem businesses dent EBITDA growth. Further, 50% YoY rise in...

ICICI Securities Ltd | Retail Equity Research Gail India reported a decent set of Q3FY18 numbers that were largely in line with our estimates on the profitability front. While the natural gas trading, transmission and petchem segment performance was broadly as per our estimates, LPG/LLH segment results came in slightly below our estimates. Revenues were at | 14414.3 crore and came in above our estimate of | 13480.3 crore EBITDA increased 14.1% YoY to | 1969.9 crore and came in below...

Gas transmission volume stood at 109mmscmd (+6% YoY, +3% QoQ), led by increased off take from power plants due to the lack of coal supply. Implied tariff stood at INR1,325/mscm (+9% YoY, -2% QoQ) due to increased share of higher tariff zone during the quarter. EBIT stood at INR6.3b (+8% YoY, -21% QoQ). While petchem sales stood at 176kmt (+21% YoY, +1% QoQ), realization declined to USD1,265/MT (-11% YoY, -1% QoQ). EBIT stood at INR940m (-30% YoY, +6% QoQ). Due to higher availability of rich gas, LPG/liq. HC sales stood at 326tmt(+10% YoY, -2% QoQ). Realization was USD557/mt (+40% YoY, +34% QoQ). EBIT stood at INR6.6b (+76% YoY, +44% QoQ).

GAIL came out with strong set of numbers in Q2FY18 where EBITDA is in line with our expectation while PAT is 8% ahead of our expectation due to higher other income. Gas transmission/trading/LHC segment surprised positively while Petchem profit was a drag due to higher gas cost. The company has entered into different contract to swap its over 60% of high cost US LNG, which is starting from Feb-2018. Also, GAIL witnessed strong demand from...

ICICI Securities Ltd | Retail Equity Research Gail India reported a mixed set of Q2FY18 numbers. The financials were mainly supported by better-than-expected performance of natural gas transmission and trading segment on both volumes and...

In-line EBITDA; Transmission/trading above est.; Petchem disappoints 2QFY18 EBITDA stood at INR20.7b (in-line; +37% YoY, +9% QoQ), led by higher gas transmission/trading earnings, partly offset by lower petrochemical earnings. Reported PAT of INR13.1b (+42% YoY, +28% QoQ) was ahead of our...