Maharatna PSU Stock On Buy Call For Good Return, Target Price Rs 110: HDFC Securities

HDFC Securities has recommended buyers to make investment in leading Maharatna status PSU stock, Gail (India) Ltd with a target price of Rs 110 apiece. The current market price of Gail (India) Ltd is Rs 96.05 apiece with intraday gain of 0.84%. The large cap company has a market capitalisation of Rs 63,153.83 crore. If you buy Gail India Ltd, you will likely get a return of 15%. Check details related to the stock below:

1. Gail (India) Stock Outlook

The last trading price of Gail (India) is Rs 96.05 apiece on BSE. The stock's 52-week high is Rs 115.69 apiece and 52-week low is Rs 83.00 apiece. The stock witnessed over 2% spurt in volume on 2.07 times and 2.33 times, respectively.

2. Gail (India) Return

The stock gave a return of 5% in last 3-months, declined 2% in last 6-months, and again declined 2% in last 1-year. It rallied 22% in last 3-years.

3. Valuation

According to HDFC Securities, "Our BUY recommendation on GAIL with a target price of INR 110 is based on expansion in gas transmission volume over FY22-25E to 129mmscmd on the back of (1) an increase in domestic gas production and (2) completion of major pipelines in eastern and southern India. Q3FY23 EBITDA/APAT, at INR 3/2bn, came in below our estimates, impacted by lower transmission and marketing volumes, weak petchem production, high interest costs, and inventory loss of INR 11bn."

4. About Gail India

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, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. 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.