GAIL (India) Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 66095.13 Crore) operating in Gas & Petroleum sector.
GAIL (India) Ltd. key Products/Revenue Segments include Gas Natural, Polymers, Sale of services, Propane, Other Operating Revenue, Compressed Natural Gas (CNG), Power, Oil Crude, Income From Telecom for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 22056.21 Crore, up 24.72 % from last quarter Total Income of Rs 17685.24 Crore and up 56.52 % from last year same quarter Total Income of Rs 14091.23 Crore. Company reported net profit after tax of Rs 2390.24 Crore in latest quarter.
Investment Rationale
GAIL’s Q2FY22 standalone and consolidated EPS are up 2.5-2.8x YoY on EBITDA rise in most segments. Q2 gas marketing EBITDA is at Rs10.8bn vs estimate of Rs9.7bn. At latest spot LNG and Henry Hub (HH) futures, we estimate H2 gas marketing EBITDA at Rs61.2bn vs Rs15.8bn in H1; Q3-Q4 profit on selling HH- linked US LNG at spot prices works out to US$24.2-18.3/mmbtu vs US$9.5/mmbtu in Q2. Thus, FY22E gas marketing EBITDA may be Rs77bn, but it raises it to Rs43bn vs Rs27.6bn earlier. The brokerage cuts FY22E petrochemical EBITDA by 29% to Rs20bn factoring in disappointment in H1. The net impact is 9% upgrade in FY22E EPS. Its target price remains unchanged at Rs218 (47% upside). Upside to FY22E EPS would be 23% if gas marketing is at Rs77bn.
Promoter/FII Holdings
Promoters held 51.85 per cent stake in the company as of 30-Sep-2021, while FIIs owned 18.36 per cent, DIIs 17.72 per cent.
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