GAIL Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
GAIL's management has expressed a positive outlook, driven by robust growth in gas transmission and marketing segments, supported by government initiatives to enhance domestic gas supply. The anticipated IPO of GAIL Gas is expected to unlock significant value, while new petrochemical projects are set to enhance production capacity. However, geopolitical risks and potential regulatory changes pose challenges that could impact operational performance. Vista's financial outlook reflects early revenue recovery and improving margins, with a target price of INR 255.84, indicating an expected upside of approximately 47%. The company's strong market position, with a 57% market share, positions it well to capitalize on the structural growth in India's gas sector. Nevertheless, investors should remain cautious of high gas costs and competitive pressures that may limit pricing power. Over the next 12-24 months, key opportunities include the expansion of the city gas distribution network and the commissioning of new petrochemical plants, while watchpoints include execution risks related to LNG supply volatility and geopolitical tensions affecting supply stability
Why We Like This Stock
- Strong growth in gas transmission and marketing segments driven by improving demand dynamics
- Anticipated IPO of GAIL Gas expected to unlock significant value
- Expansion of city gas distribution network and new petrochemical projects set to enhance production capacity
Things To Watch Out For
- Geopolitical risks and potential regulatory changes could impact operational performance
- High gas costs affecting margins and competitive pressures limiting pricing power
- Execution risks related to LNG supply volatility and declining performance in the petrochemical segment
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 133,228 | 141,903 | 141,598 | 156,359 | 168,989 |
| Profit Before Tax (Cr.) | 12,617 | 13,711 | 9,725 | 15,973 | 15,708 |
| PBT Margin | 9.5% | 9.7% | 6.9% | 10.2% | 9.3% |
| Net Profit (Cr.) | 9,930 | 10,785 | 8,127 | 13,354 | 13,130 |
| Earnings Per Share | 15.1 | 16.4 | 12.4 | 20.3 | 20.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▲ Buy | 205 | 24-Sep-2026 |
| Emkay Global | ▲ Buy | 200 | 24-Sep-2026 |
| UBS | ▲ Buy | 215 | 22-Sep-2026 |
| Geojit Financials | ▲ Buy | 200 | 19-Aug-2026 |
| Motilal Oswal | ▲ Buy | 205 | 07-Aug-2026 |
| Citigroup | ▲ Buy | 202 | 03-Aug-2026 |
| Elara Capital | ► Accumulate | 192 | 03-Aug-2026 |
| HSBC | ▲ Buy | 205 | 03-Aug-2026 |
| ICICI Securities | ▲ Buy | 215 | 03-Aug-2026 |
| Jeffries | ► Hold | 185 | 03-Aug-2026 |
| Kotak Securities | ▲ Buy | 215 | 03-Aug-2026 |
| Macguire | ▲ Outperform | 205 | 03-Aug-2026 |
| Morgan Stanley | ► Equalweight | 190 | 03-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 206 | 03-Aug-2026 |
| JMFinancials | ▲ Buy | 190 | 25-May-2026 |
| Moneycontrol | ► Equalweight | nan | 25-May-2026 |
| BOB Capital Markets | ▼ Sell | 147 | 22-May-2026 |
| CLSA | ▲ Buy | 184 | 22-May-2026 |
Company Overview
Show Company Profile
GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. The company is involved in the transmission and marketing of natural gas through pipelines to the power, fertilizer, industrial, automotive, petrochemical, domestic, and commercial sectors; exploration and production activities; and marketing of compressed biogas, city gas, and biofuels. It also produces and markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, ethylene, propylene, and polypropylene; and manufactures petrochemicals, such as high-density and linear low-density polyethylene. In addition, the company generates wind and solar power. GAIL (India) Limited was incorporated in 1984 and is based in New Delhi, India.