Stock price of Gas Authority of India (GAIL) surged 1.63% to Rs 121.45, however, it retreated later by 1.13% to Rs 118.15 a day the company posted profit for the second quarter of FY24 at Rs 2442.18 crore, up 35.3% in comparison to Rs 1804.61 crore during the same period last year, surpassing estimates. It posted revenue from operations at Rs 33,049.68 crore, down 14.7% as against Rs 38,728.86 crore during the second quarter of FY23.
GAIL’s share price dropped 0.42% in the last five days and 4.80% in the last one month, while it gained 9% in the last six months and 29.10 in the last one year.
Prabhudas Lilladher: Buy – Target Price: 139
“GAIL reported higher than estimated EBITDA of Rs 3490 crore (up 44% QoQ, PLe: Rs 2640 crore) while PAT came in at Rs 2400 crore (up 70% QoQ, PLe: Rs 178o crore). Pipeline utilization increased to 52% owing to growing domestic demand. The company expects transmission volumes to grow to 132 mmscmd in FY25. Going forward, we build in a 4.8/4.5% CAGR volume growth over FY24-26E in transmission and trading segments. We maintain ‘Buy’ rating on the company, and value it at 9x FY26 adj EPS of 12.7 and the value of listed and unlisted investment at Rs 25 to arrive at our target price of Rs 139.”
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