Shares of GAIL (India) soared 7 per cent in early commerce on Friday submit recording a 28 per cent improve in consolidated web revenue for the quarter ended December 2024 at ₹4,084.24 crore as in opposition to ₹3,193.34 crore within the corresponding quarter earlier yr.
The inventory closed 6.04 per cent constructive on the NSE at ₹177.20, after hitting a excessive of ₹178.87.
Analysts have been divided, a majority having retained purchase rankings on account of regular general prospects of the corporate, whereas some have flagged considerations over advertising and marketing volatility and earnings miss.
Motilal Oswal emphasised that the Q3 efficiency was considerably under estimates, primarily on account of weak gasoline advertising and marketing section efficiency.
The brokerage added that the transmission volumes have been weaker on account of a decline in energy sector demand within the quarter, whereas adversarial unfold motion on a few of the gasoline contracts led to decrease profitability on a few of the advertising and marketing contracts.
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ICICI Securities believed that the prospects stay regular for the corporate which ought to drive a interval of sustained efficiency over the subsequent couple of years. “Rising home gasoline provides, LNG liquefaction capability and the expectation of comparatively average pricing of the identical together with the normalisation of LPG costs are all positives,” it added.
Each brokerages have reiterated purchase name on the goal worth of ₹255.
Elara Capital analysts have slashed the goal worth on GAIL from ₹263 to ₹234, to factor-in decrease gasoline advertising and marketing margin and subdued earnings from LPG & Liquid Hydrocarbons (LHC) segments. They foresee gasoline transmission quantity to develop at a sturdy tempo, on account of pipeline connectivity with new areas, rising CGD demand and powerful progress plans of ONGC and Oil India as regards manufacturing.
Analysts of Emkay World have retained purchase at a goal worth of ₹220 primarily based on enticing valuation and upcoming pipeline tariff triggers. They’ve additionally indicated key dangers resembling adversarial commodity worth and margins, forex fluctuations, rules, outages, and undertaking delays.
Nomura, sustaining purchase at a goal worth of ₹240, said that the outcomes sharply missed estimates on account of decrease gasoline advertising and marketing and petchem profitability.
However, Nuvama Institutional Equities has downgraded the inventory to ‘scale back’ at a goal worth of ₹159, reasoning the unstable advertising and marketing earnings. The brokerage continues to watch volatility within the pure gasoline advertising and marketing earnings.
