Maharatna PSU Stock Gets Buy Call On Tariff Hike Possibilities, Target Price Rs 125

Leading Honk Kong based brokerage firm, CLSA has recommended investors to buy Maharatna stock, GAIL (India) Ltd with a target price of Rs 125 apiece amid possibilities of tariff hikes. If you buy GAIL (India) shares, you can get likely return of 28%. The analyst sees over 50% rise in tariffs that might boost GAIL (India)'s topline.

CLSA also elevated Earning Per Share (EPS) by 14% for 2025 considering 40% surge in tariffs. Check details below:

1. GAIL (India) Stock Performance

The last trading price of GAIL (India) is Rs 98.05 apiece with intraday gain of 2.62%. The stock's 52-week high is Rs 115.69 apiece and 52-week low is Rs 83.00 apiece, respectively. The company has a market capitalisation of Rs 64,468.85 crore.

2. GAIL (India) Return & Financial Outlook

The stock gave a return of 8% in last 3-months, 11% in last 6-months, 6% in last 1-year, and 23% in last
3-years.

The company for the quarter ended December 31, 2022 declared a consolidated income of Rs 36,334.20 crore, down 6.65% from previous quarter total income of Rs 38,921.38 crore.

It declared a negative net profit after tax of Rs 151.51 crore in latest quarter.

3. Valuation

According to CLSA, "Gail proposes a 70% hike in the gas transmission tariff, even after accommodating disagreements of regulators."

4. About GAIL (India) Ltd

GAIL (India) Ltd. 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".

Government of India now holds 51.45% shares of the company. GAIL became a Navratna in 1997 and is now one of the ten Maharatna Public Sector Undertaking, the highest status conferred to any PSU, according to its official website. 

Disclaimer

The stock has been picked from the brokerage report of CLSA. 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.