Buy This Maharatna Stock For Potential 35% Return, Dividend Yield 11.17%: Prabhudas

Leading brokerage firm Prabhudas Lilladher has assigned buy call to the stock of GAIL (India) Ltd. If you buy GAIL (India) Ltd today at the current market price of Rs 89 apiece, you are set to get a potential return of 35%. It is worth noting that GAIL (India) Ltd has a very high dividend yield of 11.17%. The Maharatna company has a market capitalisation of Rs 58,880.02 crore.

Check key takeaways below pertaining to GAIL (India) Ltd:

1. GAIL (India) Ltd Stoc Outlook

The current market price of GAIL (India) Ltd is Rs 89 apiece with 52-week high at Rs 115 apiece and 52-week low at Rs 83 apiece, respectively.

2. GAIL (India) Ltd Return

The stock declined 22% in the last 5-years, gained nearly 2% in last 3-years, and tumbled 11% in last 1-year. The stock has surged nearly 3% in last 1-month.

3. GAIL (India) Ltd Q2 Result

GAIL reported lower than expected Q2 results with EBITDA of Rs17.6bn (PLe: Rs21.4bn; 59.6% QoQ), due to lower gas trading along with weak petrochemicals and lower LPG. PAT was at Rs15.4bn (PLe Rs14.8bn; - 47.3% QoQ).

Lower volumes and margins hit Q2 operational performance, however higher other income of and margins hit Q2 operational performance, however higher other income of Rs 8bn supported PAT.

4. GAIL (India) Ltd Valuation

According to Prabhudas Lilladher, "We believe commissioning of new pipelines over next one year will augment volumes and profits. Reiterate 'BUY' with a TP of Rs120 based on 7x EV/E FY24E."

GAIL likely to continue sourcing from spot LNG volumes due to non-receipt of Gazprom volumes along with diversion of 0.45mmscmd in Q2. Petchem capacity utilization currently stands at 40% due to lower gas availability, added the analyst.

5. GAIL (India) Ltd About

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. It owns and operates a network of around 14,488 km of natural gas pipelines spread across the length and breadth of country.

It is also working concurrently on execution of multiple pipeline projects to further enhance the spread, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. 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.