GAIL (India) Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 63874.94 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 16185.41 Crore, up 1.91 % from last quarter Total Income of Rs 15882.82 Crore and down -14.26 % from last year same quarter Total Income of Rs 18878.35 Crore. Company reported net profit after tax of Rs 2042.14 Crore in latest quarter.
Investment Rationale
FY22-FY23E Brent based on futures is down 6-8% from peak while FY22-FY23E Henry hub is down/up modestly. GAIL’s FY22E gas marketing EBITDA, even at latest Brent and HH futures, is 6% higher than base case but FY23E EBITDA is 21% below base case. However, FY22-FY23E spot LNG not having corrected too much (20% of US LNG likely to be sold at spot prices) and 80-50% of FY22-FY23E LNG volumes already being tied up as of early-Jun’21 may mean upside to gas marketing EBITDA; the brokerage estimates FY22-FY23E gas marketing EBITDA in most likely scenario to be 59-2% higher than base case and consequent upside to FY22-FY23E EPS at 13-2%. Though oil price has corrected, we remain optimistic that OPEC+ will cap supply to ensure supply deficit and keep oil price buoyant.
Promoter/FII Holdings
Promoters held 51.8 per cent stake in the company as of March 31, 2021, while FIIs held 15.9 per cent, DIIs 19.1 per cent and public and others 13.2 per cent.
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