GAIL, a natural gas producer, is a large-cap stock on the exchanges. The state-owned company saw a strong rally on Tuesday as the stock turned ex-bonus ahead of its record date. Investors will receive bonus shares in the ratio of 1:2. After riding on the bulls, GAIL shares hit the day’s high and climbed over 2%. Experts are optimistic about the growth of GAIL shares after getting the ex-bonus.
on BSE, gallo shares closed 93.05 each, an increase of 2.03%. Shares close at day’s high 93.20 each.
of the company Market evaluation is around 61,181.30 crore on Dalal Street.
Under the bonus issue of 1:2, GAIL will give a new bonus share to the two existing equity shares.
GAIL shares became ex-bonus on Tuesday, ahead of the record date set on September 7, 2022. The ex-bonus is seen as a crucial date for investors to be eligible for bonus shares. Usually, to get the bonus share benefit, an investor must buy the shares of the company at least a day or two before the ex-date. This is due to the T+1 and T+2 settlement cycles.
Large-cap stock GAIL is listed on BSE under ‘A’ group category with a ‘T+2’ settlement cycle. The ‘T+2’ option simply means that the shares purchased by you will be credited to your demat account after two days.
Should you buy GAIL shares after the bonus issue?
“The ex-bonus date is today i.e. September 6 and the record date for the same is September 7. Accordingly, the share price has been adjusted to the opening price,” ICICI Direct’s Harshal Mehta and Amogh Deshpande Research Analysts said in their note on Tuesday. has gone. 91 per share against the closing price 137 per share yesterday.”
Therefore, the analysts’ note states, “We revise our target price to 110 per share after this corporate action. We maintain our BUY rating on the stock and value GAIL based on the SoTP methodology.”
According to analysts at ICICI Direct, pick-up in gas transmission volumes are among the key triggers for GAIL’s future performance; Good growth in gas trading is expected in the near future on the back of favorable spot LNG prices; and consistent dividend payments.
In Q1 FY22, GAIL’s business more than doubled 38,033.30 crore in Q1FY23 from 17,702.43 crore in Q1 a year ago. it was a net profit 2,915 crore, registering a year-on-year growth of 90.5% on account of bumper income from natural gas marketing. As far as revenue from operations is concerned, it was Huge growth of 116% against 37,572 crores 17,387 crores for Q1FY22.
During Q1FY23, the company’s margin on gas marketing made up for a 12.5% decline in income from the gas transportation business and a 74% decline in petrochemicals earnings.
GAIL India is a gas utility company with various business segments like Gas Transmission & Trading, LPG, LLH and Petrochemicals. It operates a natural gas pipeline network of 14,500 km by the end of FY 2012. In addition, GAIL has a presence in the CGD sector, both directly and through its associate companies.
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