29% Rise In 30-Days: Buy PSU Maharatna Stock, TP Rs 195: Motilal Oswal

Brokerage house Motilal Oswal has assigned buy call to large cap PSU Maharatna stock GAIL (India) with target price of Rs 195 apiece. GAIL (India) shares gained 29% in last 30-days. Last trading price of GAIL (India) stock on BSE is Rs 162.05 per share with intraday jump of 3.15%.

GAIL (India) stock offered return of 68% year-to-date. GAIL (India) shares hit 52-week high on December 29 when shares prices soared to Rs 164.25 per share. If you buy GAIL (India) stock at the last trading price of Rs 162.05 apiece, you can fetch potential gain of 20.33%. Check details below:

GAIL (India) Valuation: According to Motilal Oswal, "We value the core business at 12x Dec'25E adjusted EPS of INR13.7, as we rollforward our valuations to Dec'25. Adding the value of listed and unlisted investments of INR30, we arrive at our revised TP of INR195. Our TP implies FY26E P/B of 1.6x. The stock is currently trading at an FY26E P/B of 1.3x. Reiterate BUY."

GAIL (India) Stock Performance & Return: Its 52-week high price is Rs 162.25 per share and 52-week low price is Rs 91.00 per share, respectively. The large cap company has a market capitalisation of Rs 1,06,549.49 crore. GAIL (India) shares offered return of 56% in last 6-months, gained 69% in last 1-year, and offered return of 84% in last 2-years. In last 3-years, GAIL (India) stock gained 96% and rose 36% in last 5-years.

GAIL (India) Financials: The state-run company declared a surge of 56% in its standalone profit for the quarter ended September 2023 to Rs 2405 crore as compared to Rs 1537.07 crore in the corresponding period of last year. But, it reported a decline pf 17.32% in its total revenue to Rs 31,822 crore as against Rs 38,490.89 crore in the similar period of last fiscal. The PSU gas company announced a rise of 67% in its profit before tax to Rs 3130.10 crore in Q2 of current fiscal as against Rs 1875.91 crore in the corresponding period of last year. The company's earnings per share soared to Rs 3.66 in Q2 from Rs 2.34 in September 2022 quarter.

About GAIL (India) Ltd: It was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company was initially given the responsibility of construction, operation & maintenance of the Hazira - Vijaypur -Jagdishpur (HVJ) pipeline Project. It was one of the largest cross-country natural gas pipeline projects in the world. Originally this 1800 Km long pipeline was built at a cost of Rs 1700 Crores and it laid the foundation for development of market for natural Gas in India. Government approved grant of Maharatna status to Gas Authority of India Ltd. (GAIL). This decision was communicated on 1st February, 2013.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.