Maharatna PSU gaint, GAIL (India) is coming up with fresh interim dividend reward for its shareholders ahead. The proposal of dividend will be considered for approval on January 30, when the company will announce its Q3FY25 results. In the third quarter, the heavyweight natural gas company is expected to record lower EBITDA owing to gas trading margin. High LNG prices are likely to impact domestic gas demand. Despite this, there is potential for double-digit gains in the short term in GAIL stock.
GAIL Share Price:
GAIL's share price stood at Rs 179.30 apiece on BSE, with a market cap of Rs 1,17,891.54 crore. During the closing bell, the stock surged nearly 2%. YTD, the stock is down by over 6%.
GAIL Q3 Results:
As per the regulatory filing on January 23, GAIL has informed that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, 30th January 2025 to, inter-alia, consider the Un-Audited Financial Results for the quarter and nine months ended 31st December, 2024.
In Q2FY25, the company reported revenue from operations of Rs 32,931 crore, as against Rs 33,692 crore in Q1 FY-25. PAT stood at Rs 2,672 crore in Q2 FY-25 as against Rs 2,724 crore in Q1 FY-25. Also, in the quarter, the company stated its Natural Gas transmission volume stood at 130.63 MMSCMD in Q2 FY-25 & Gas marketing volume was 96.60 MMSCMD in Q2 FY'25. The LHC & Polymer sales stood at 253 TMT & 226 TMT respectively in Q2 FY-25 as compared to 218 TMT & 169 TMT respectively in Q1 FY-25.
In its preview note, JM Financial said, "India's domestic gas demand in 3QFY25 is expected to decline by a marginal ~1% QoQ driven by high spot LNG prices. GAIL could see largely flattish QoQ growth in gas transmission volume at 130mmscmd and gas trading volume at 99mmscmd; petchem sales volume may be a tad lower QoQ at 220kt (from 226kt in 2QFY25) while LPG sales volume could be flattish QoQ at 255kt."
Furthermore, the brokerage added, " GAIL's 3QFY25 EBITDA could decline 6.2% QoQ due to moderation in gas trading margin on account of high US HH gas price and lower oil-linked LNG price, and some moderation in petchem segment EBITDA due to global prices."
GAIL Dividend:
Further, the company announced that it will also consider the proposal of payment of Interim Dividend for FY 2024-25, on January 30.
For the purpose of payment of Interim Dividend, if so approved by the Board, the "Record Date" will be Friday, 07th February, 2025.
Earlier, in February last year, GAIL delivered Rs 5.50 per share dividend. Notably, GAIL is among the leading PSU stocks that pay hefty dividends. As per Trendlyne data, GAIL has paid up to 47 dividends since September 2001. GAIL is also among the highest bonus issue distributors to its investors.
Noteworthily, the natural gas producer has a long track record of rewarding bonus shares. The first time, GAIL turned ex-bonus was on October 6, 2008, for its bonus issue in the ratio of 1:2. After nearly a decade, GAIL rewarded two back-to-back bonus shares of 1:3 each in March 2017 and March 2018. Later on, the company also paid bonus shares in the ratio of 1:1 in July 2019. The latest bonus issue is of 1:2 which was in September 2022.
BUY GAIL Share Price?
Brokerage JM Financial has suggested BUY for a target price of Rs 235.
Meanwhile, as per the Trendlyne data, the consensus recommendation from 32 analysts for GAIL (India) Ltd. is BUY. EPS is expected to grow by 15.3% in FY25. The average 1-year target price is at Rs 232.03, signalling about 29% potential upside ahead.
About GAIL (India):
GAIL (India) Limited is India's leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc.
Click it and Unblock the Notifications
Sign in with Google