GAIL (India) Ltd. share price target

GAILs 4Q EBITDA came in at Rs 15.6bn ( 23% YoY), led by an improvement in LPG and petchem segments. APAT was at Rs 10.5bn ( 26%) and RPAT at Rs 2.6bn, owing to the impairment of Rs 7.9bn for investment in RGPPL.

Gail (India) is India's leading integrated natural gas company with a presence in gas transmission, gas trading, gas processing, LPG production & transmission, petrochemicals, etc. The company has a panIndia presence, operating gas pipelines of ~11500 km with a capacity of ~240 mmscmd. Gail also has a presence in the fast growing city gas distribution (CGD) business through its wholly-owned subsidiary Gail Gas and stakes in Indraprastha Gas, Mahanagar Gas, etc. Natural gas transmission, trading to remain healthy, going ahead Growing natural gas demand in India due to low domestic natural gas...

Our recent interaction with GAILs management during a visit to its PATA plant reaffirms our bullish stance on the company. The new Petchem plant has fully stabilised, and is likely to operate at a utilisation level of 90% in FY18E. The outlook for the gas transmission business is improving, led by the Urja Ganga project (Phulpur-Haldia pipeline).

GAIL's all business segments to show marked improvement over FY16- 18E. PAT in FY18E will grow at 30% YoY, with RoCE/ RoEs expanding by 300 bps to 16-18%.

Revenue rose by 2.11% to Rs. 12107.89 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it fell by 9.35% when compared with Q3FY16.

Revenue decreased 9.8% YoY to Rs121 bn, EBIDTA grew 49.3% to Rs17.3 bn and PAT rose 48% to Rs9.8 bn (IDBIest Rs10.8 bn). On a positive note, volume saw significant growth across segment on YoY and even QoQ basis. Gas transmission/trading/Petchem/LHC volume...

ICICI Securities Ltd | Retail Equity Research Gail reported Q3FY17 numbers, which came in higher than our estimates. The topline declined 8.4% YoY to | 12318.6 crore but came in higher than our estimate of | 11328.1 crore mainly on account of higher than estimated natural gas trading revenues EBITDA increased 49.3% YoY to | 1726.1 crore (our estimate: | 1490.3 crore) mainly due to the strong performance across business segments and also higher EBIT in other segments (includes...

GAILs 3QFY17 EBITDA was at Rs 17.3bn ( 50% YoY), led by an improvement across transmission, petchem and LPG segments. APAT was at Rs 9.8bn ( 45%).

GAIL faced challenging times during FY14-16 given the plunge in gas volumes and lower profits in petchem/LPG segments (lower realisation and higher gas cost). As a result, EBITDA and PAT have declined 20% and 25% CAGR over the period.