GAIL (India) Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 72111.86 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
GAIL’s Q4FY21 standalone PBT is up 6% YoY (EPS down 14% YoY on higher tax) driven by rise in petrochemical EBITDA. Consolidated Q4 EPS is down 24% YoY. FY21 EPS is down 18% YoY hit mainly by gas marketing EBITDA in the red due to plunge in oil and spot LNG prices. The brokerage estimates FY22E gas marketing EBITDA to be up Rs31bn YoY as surge in oil and spot LNG vs modest rise in Henry Hub (HH) gas price would mean sale of HH-linked US LNG at higher oil / spot LNG-linked prices. FY22E outlook for LPG EBITDA is better due to oil price surge, as well as for petrochemical EBITDA given record polyethylene (PE) margins. Upgrade across most segments has meant 8% upgrade to FY22E EPS and 13% in target price to Rs207 (28% upside). Further upsides appear likely.
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 other 13.2 per cent.
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