GAIL (India) Ltd. share price target

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...

GAIL is a dominant player in natural gas in India

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...

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...

Brent at USD69/bbl (May'21 average) has raised the price of oil-linked LNG to ~USD9/mmBtu (13% slope), similar to that of current spot LNG prices (which are also at ~USD9-10/mmBtu for July delivery). These make the pricing for US HH contracts favorable for GAIL. At the end of Dec'21, GAIL had started supplying gas (~2.3mmscmd totally) to various fertilizer plants ~0.8mmscmd to Mangalore Chemicals & Fertilizers, ~1mmscmd to the Ramagundam plant, and ~0.5mmscmd to the Gorakhpur plant. Company guided gas consumption at these plants to reach...

The new pipeline projects will boost the customer base, supported by growth in gas marketing and transmission and reduction in COVID impact on the operations. Hence, we reiterate our BUY rating on the...

Both physical, as well as the financial performance of the company, improved further across all major segments in Q3 as compared to Q2 Fy21. Natural gas transmission improved 4 per cent quarter-on-quarter, 8 per cent in gas marketing, 3...

The petchem segment reported volumes at 231 KT above our estimates of 210 KT. Higher volume and lower than expected costs led to EBIT of | 434.1 crore vs. our estimate of | 250.1 crore. LPG, LLH volumes were at 319 KT. Lower realisation and higher than expected costs led to lower than expected EBIT at | 282.7 crore. Going forward, on account of an increase in global crude oil prices, we expect realisations for LPG & petchem to improve, thereby increase in profitability. We expect petchem & LPG segment EBIT at...