GAIL’s stock has reached a 52-week high. should you buy

“bottom position price of lng The transmission business will have a positive impact on operations as the company uses spot LNG to bridge the gap, lower input costs for the Petchem division and a revival in transmission volumes. However, the trading profit may soften due to narrowing of the difference between the spot and the contracted price. In addition, unified tariffs for its key nine pipelines are expected in March (after March 6 open house),” brokerage Systematics Institutional Equities said in a note.

The brokerage has increased the tariff 1.9/scm already for FY24E/FY25E 1.6/scm while it cuts the trading profit on LNG portfolio by 10%. Overall, it has raised EBITDA estimates for FY24E/FY25E by 11%/9%. However, lower LNG prices will re-rate the sector. Brokerage has been upgraded Gail SharesRating to Buy from First Hold with Revised Target Price of ‘ already 120 98 each.

“Ready for India’s gas consumption. Trades at 8x FY25E P/E. Government focused on increasing gas carrying trunk pipelines: largely done by GAIL. PNGRB said it is creating conditions to enable GAIL to earn ‘reasonable returns’ on its pipeline investment, allowing for transmission losses and pipeline expansion. PNGRB also believes that the revised unified tariff framework with three tariff zones (0-300 km, 300-1,200 km and 1,200 km+) will help drive gas adoption in new markets.” Stock with target price 106.

State gas utility GAIL (India) Ltd reported a 90% decline in net profit for the third quarter (Q3) of December 2022 following losses in petrochemical and natural gas marketing business. its consolidated net profit Compared to 397 crores in October-December 2022 It earned Rs 3,800 crore in the same period a year ago.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.