GAIL (India) Ltd. share price target

GAIL has come out with strong set of numbers in Q1FY19 where it beats us at operational level while PAT came in line with estimates. Volume across segments grew significantly YoY led by gas trading, transmission and Petchem business. Gas trading volume grew 24% YoY to highest-ever 97.2mmscmd and EBITDA also reached to highest-ever level of Rs5.5 bn. GAIL's EBITDA/PAT increased 18.1%/22.8% YoY to Rs22.4 /12.6 bn in Q1FY19. Gas volume outlook in India remains buoyant on the back of ban of Petcoke & FO in few states and huge supply growth due to upcoming LNG terminal at Mundra and Ennore. However, higher gas prices at current levels raises concern on...

Gail India reported a decent set of Q1FY19 numbers, which came in above our estimates. The profitability of the gas trading and petchem segment was above our estimates whereas natural gas transmission and LPG/LLH segment results were broadly in line with our...

ICICI Securities Ltd | Retail Equity Research Gail India reported a mixed set of Q4FY18 numbers. While natural gas transmission and LPG/LLH segments were broadly as per our estimates, the natural gas trading and petchem segment results came in below our estimates. Revenues were at | 15430.7 crore, above our estimate of | 13693.9 crore EBITDA increased 9% YoY to | 1695.3 crore, below our estimate of | 2030.4 crore, mainly on account of lower margins in natural gas...

Higher crude oil price is providing competitive advantage to its Henry Hub linked gas, where 90% of volume is already tied up for FY19 and ~50% for FY20. Also, the company is quite hopeful for the implementation of unified tariff which would be significantly positive. We are cutting our TP to Rs393 from Rs403. Maintain BUY. Key Highlights and Investment Rationale Lower profits from gas trading, petchem businesses drag down the profits Gas trading EBITDA declined 65% YoY to Rs1.6 bn owing to the penalty paid due to delay in US-based cargos. Also, Petchem profits decreased 25% YoY to Rs1.4 bn...

GAIL (India) reported profit after tax of Rs 1020.92 crore in Q4FY18 up by 292% compared to Rs 260.16 crore in Q4FY17 while net sales of the company rose 15% to Rs 15430.69 crore. OPM of the company fell 60 bps to 11% in Q4FY'18 compared to Q4FY'17 leading to 9% increase in...

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...