GAIL India shares' target price raised as brokerages bullish. Key triggers
1 min read 23 Mar 2023, 09:12 AM ISTPNGRB has declared integrated tariff for GAIL India's nine inter-connected pipelines
PremiumPNGRB has declared integrated tariff for GAIL's nine inter-connected pipelines carrying almost 90% of its volume compared to the standalone tariff regime earlier. The declared tariff is INR 58.6/mmbtu, which is an increase of 30% over the current INR 45/mmbtu being realized by the company and is broadly in line with street expectations, as per analysts.
“GAIL will likely get its tariff reassessed higher post the KP Committee report, which is likely to be approved by the Cabinet in the coming week and we incorporate the same in our FY25 estimates. We also attended the company's analyst meet yesterday and came back convinced with the progress being made on most fronts," said Antique Stock Broking.
The brokerage has remained positive on GAIL shares and has reiterated BUY rating on the stock with a revised target price of ₹128 per share (earlier ₹117) as it rolls forward its target from 1HFY25 to FY25.
“We see 17% Ebitda increase in FY24E with part of the benefit offset by higher operating cost. Mgmt's buoyant guidance for tx vol and trading profits in FY24E are contingent on benign Spot prices as no term contract has been firmed up. LPG profitability will be impacted by sharp fall in international prices," said Jefferies which has also raised target price on GAIL shares to ₹110 and has maintained Hold rating.
For the quarter ended December 2022 (Q3 FY23), the state gas utility GAIL (India) Ltd reported a 90% decline in its net profit after suffering losses in petrochemical and natural gas marketing business. Its consolidated net profit of ₹397.59 crore in October-December 2022 is compared with ₹3,800.09 crore earning in the same period a year ago.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
