Gas Distribution · GAIL
Gas Distribution
from 174 today
Hollow marker shows the firm’s previous target.
GAIL delivered a strong Q1FY27 despite LNG supply disruptions arising from the West Asia conflict. Supported by a strong balance sheet and healthy cash generation, GAIL remains well positioned to benefit from India's gasification theme, leading us to maintain our BUY rating with an SOTP-based target price of Rs. 200.
India's structural natural gas demand uptrend should support sustainable growth in GAIL's transmission and gas marketing volumes over the medium term. GAIL's valuations have corrected materially, offering an attractive risk-reward given a healthy dividend yield and robust free cash flow outlook. Reiterate BUY with a TP of INR205.
In 1QFY27, GAIL's standalone EBITDA came in 86% above our estimate at INR63.8b, driven by strong performance in natural gas trading and LPG & liquid HC segments. Reiterate BUY with a TP of INR206.
GAIL reported a strong earnings beat led by temporary Trading gains, with PAT beating estimates at INR42.9bn. We maintain our BUY rating, valuing the company at 12.0x FY28E EPS and adding INR39/share for investments, arriving at a revised TP of INR206.
In 1QFY27, GAIL's standalone EBITDA came in 86% above our estimate at INR63.8b, driven by strong performance in natural gas trading and LPG & liquid HC segments. GAIL offers a limited downside, driven by attractive dividend yield and robust FCF outlook, and we reiterate our BUY rating.
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