GAIL Share Price: Maharatna PSU oil and gas giant, GAIL (India) is Rs 8.55 away from its 52-week low of Rs 150.60 apiece on BSE. Despite witnessing a surge on March 12, GAIL shares have broadly declined by 17% year-to-date. Its weekly and month-on-month performance is down by 2% each. GAIL has delivered a hefty dividend of up to Rs 16 in tranches over the past two years, which is after its 1:2 bonus issue. Broadly, the consensus of experts is BUY on GAIL!
GAIL Share Price:
After market hours of March 12, GAIL shares surged by 1.43% to Rs 159.15 apiece on BSE, with a market cap of Rs 1,04,642.71 crore. However, GAIL dropped by 1.6% on a weekly, down by 2% month-on-month, and has nosedived by 27% in the past six months. Year-to-date, GAIL shares are down by 17%. In a year, GAIL is down by 6%.
As of March 12, GAIL's price-to-equity ratio is at 13.74x, while its return on equity is at 10.80%.
At the current market price, the distance to the 52-week low of Rs 150.60 is Rs 8.55 in GAIL stock. GAIL's 52-week high is at Rs 246.35 apiece.
GAIL Corporate Actions:
GAIL has delivered three dividends since its bonus issue of 1:2.
Dividends: The PSU behemoth has delivered three interim dividends from 2023 to February 2025. The latest dividend payout was Rs 6.50 per share and its ex-date was on February 7, 2025. GAIL also paid Rs 5.50 dividend per share with an ex-date of February 6, 2024. The company delivered Rs 4 dividend per share with an ex-date on March 21, 2023. Cumulatively, the payout is Rs 16 per share from 2023 to date.
Bonus Issue: GAIL turned ex-bonus on September 6, 2022, in the ratio of 1:2. This meant that GAIL delivered 1 bonus share on the existing two shares.
BUY OR SELL GAIL?
As per Trendlyne data, the consensus recommendation from 31 analysts for GAIL (India) Ltd. is BUY. Of the total, 18 analysts have recommended STRONG BUY, while 4 analysts have said BUY. EPS is expected to grow by 13.2% in FY25. The average 1-year target price of Rs 216.48 apiece, hinting at a potential 36% upside ahead.
In its latest report, Emkay Global said, "Lower oil prices impact GAIL's petchem business, where realizations are oil-linked, and given that feedstock is gas with US LNG and spot, both being steady. Also, US LNG sold at oil-linked pricing in India would see spreads shrink as Henry Hub hovers at USD4.4/mmbtu. However, GAIL's valuations seem reasonable and the upcoming pipeline tariff hike is a key trigger."
Emkay highlighted that OPEC+(8) agreed to proceed with gradual rollback of the 2.2mbpd voluntary production cut effected in Nov-23, starting from Apr-25 up to Sep/Dec-26. The group has cited healthy market fundamentals and a positive outlook but could stop or even reverse the increase depending on market conditions. This was cautiously expected by markets following Trump's US presidency, but is still a major step, being 38% of the 5.9mbpd of cumulative cuts taken during 2022-23.
Notably, Oil prices, which have already started weakening from USD80/bbl+ is seeing further downward pressure with Brent futures near USD70/bbl currently, the brokerage highlighted.
About GAIL (India):
GAIL (India) Ltd. is a Maharatna CPSE under the Ministry of Petroleum & Natural Gas. GAIL has a large network of Natural Gas pipelines of ~ 16,420 Km; two LPG Pipeline systems of ~ 2040 Km; five Gas Processing plants for production of LPG and other liquid hydrocarbons with a combined production capacity of around 1.4 MMTPA and a gas based integrated petrochemical plant of capacity 810 KTPA of polymer.
GAIL was incorporated in August, 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG), with the mission of "accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy".
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