Brokerages remain bullish on GAIL India, see up to 23% upside post Q4 earnings

Mumbai: Brokerages have maintained a bullish view on GAIL India and raised price targets by 17-23% after the state-owned gas utility company reported a 28% jump in March quarter profit.

The company reported a net profit of ₹1,907.7 crore compared with ₹1,487.33 crore net profit in the same period a year ago. Strong performance of petrochemicals business and turnaround on rise in international prices boosted the fourth quarter earnings. Shares of GAIL ended up 0.15% at ₹163.70 on Friday.

Edelweiss, CLSA, IIFL, Emkay and Kotak Institutional Equities have maintained buy ratings. Edelweiss, which raised target price the highest by 23%, said the stock’s current valuation is attractive, with growth likely to be driven by transmission or marketing volume growth and higher petchem capacity.


CLSA has raised earnings estimates for FY22 and FY23 by 2-3% due to GAIL’s positive leverage to crude prices, receding worries on gas trading as well as volume tailwinds in core gas transmission.