Maharatna Multibagger PSU Gas Stock To Sell As Recommended By PL, TP Rs 170

Brokerage firm Prabhudas Lilladher has recommended sell call to large cap Maharatna PSU operating in gas & petroleum sector, GAIL (India) Ltd shares with target price of Rs 170 per share. Current market price of GAIL share on BSE is Rs 219.75 per share with intraday gain of 1.29%. GAIL India shares witnessed attractive rally of 56% in last 1-year and 105% gain in last 1-year. The PSU has a market cap of Rs 1,44,487.81 crore. FII/FPI have decreased holdings from 14.24% to 14.17% in March 2024 quarter.

Number of FII/FPI investors increased from 758 to 797 in March 2024 quarter. Mutual Funds have increased holdings from 10.16% to 10.26% in March 2024 quarter. Check key details below:

Prabhudas Lilladher On GAIL: According to the analyst, "In next 3-4 years, we expect India's gas consumption to rise from 191mmscmd in FY24 to 218mmscmd. While GAIL's transmission would grow by 8% CAGR in FY24-26E, trading is expected to grow a tad lower (6%). Petrochemical and LPG are expected to remain muted." Considering the slow growth in transmission and low return ratios for petrochem expansions, we remain negative on the stock with a SELL rating and target price of Rs170, valuing it at 12x FY26 standalone EPS and adding the value of investments, added the brokerage firm.

GAIL (India) Q4: GAIL (India) Ltd on May 16 reported a surge of 289% in its consolidated net profit to Rs 2468.71 crore for Q4 (Jan-March) of FY 2023-24 as compared to Rs 634.2 crore reported in the corresponding quarter of last year. Sequentially, net profit of GAIL declined 22.7% from Rs 3194.6 crore. The surge in net profit reported on a low base as GAIL suffered from disruptions to supply from Russian energy firm Gazprom and increased gas prices all across the globe.

GAIL (India) Share Performance: The 52-week high price of GAIL (India) share on BSE is Rs 233.00 per share (as on 03/06/2024) and 52-week low price is Rs 103.20 per share (as on 23/06/2023), respectively. GAIL (India) shares jumped 10% in last 2-weeks, rose 125% in last 2-weeks, gained 125% in last 2-years, and surged 101% in last 3-years.

GAIL Bonus Shares History: GAIL (India) Ltd offered shareholders 5 bonuses since October 6, 2008. GAIL's last bonus issue was declared in the proportion of 1:2 with it traded ex-bonus on September 6, 2022. In 2019, it announced bonus issue in 1:1 ratio, in 1:3 ratio in 2018, again in 1:3 ratio in 2017, and in 1:2 ratio in 2008.

GAIL Dividend History: GAIL (India) Ltd. announced 47 dividends since September 3, 2001. In the last 12 months, GAIL declared an equity dividend of Rs 5.50 per share. If current share price of Rs 219.75 is taken into consideration, GAIL offers a dividend yield of 2.50%.

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 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.