Around 2.29 pm, gallo trading on shares 136.70 each, up 0.96% on the BSE. Shares close at day’s high 137.25 each.
The market capitalization of the company is 59,899.16 crore at the current price level.
Gail’s offer bonus share in the ratio 1:2 on the marked price of 10 each. Simply put, GAIL will give a new bonus share to the two existing equity shares.
That said, GAIL will be ex-bonus on September 6, a day before the record date.
Ex-bonus is an important date for investors to be eligible for bonus shares. Generally, to be eligible for bonus shares, an investor must purchase 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.
On BSE, the large-cap stock GAIL is listed under ‘A’ group with a ‘T+2’ settlement cycle.
Under the ‘T+2’ settlement option, the shares purchased by you will be credited to your demat account after two days.
In Q1FY23, GAIL reported a 90.5% year-on-year jump in its net profit 2,915 crore on the back of bumper earnings from natural gas marketing. Operational revenue up 116% year-on-year 37,572 crore in Q1FY23 as compared to 17,387 crore for the same quarter of the previous financial year. Meanwhile, turnover more than doubled 38,033.30 crore in Q1FY23 from 17,702.43 crore a year ago.
During the quarter, margins on gas marketing made up for a 12.5% decline in income from the gas transportation business and a 74% decline in petrochemicals earnings.
Should you invest in GAIL shares?
Last week, in their oil and gas report, analysts Harshal Mehta and Amogh Deshpande of ICICI Direct shed some light on media reports that suggested that GAIL India and Russian gas company Gazprom, a subsidiary of Gazprom Singapore, were pumping natural gas into India from Singapore. discussing imports. Gazprom of Germany where the Russian company has a stake.
GAIL’s transmission volume is expected to be normal. He said, “GAIL’s total contracted LNG portfolio is 14 MMTPA. Of this, Gazprom LNG has 2.5 MMTPA (about 18% of the LNG portfolio mix). As per the contract, 36 cargoes were to be supplied in this calendar year. However, In the previous quarter, Gazprom defaulted on the delivery of eight cargoes since end-May, according to management commentary in the Q1FY23 conference call, disrupting supply and impacting transmission and trading volume (I-direct estimate) by 6-7% for GAIL. GAIL has also reduced its internal consumption for the petchem segment.
Following the above, ICICI Direct analysts maintain a ‘Buy’ rating on GAIL with a target price of Rs. 160 per share.
Post Q1FY23, Analysts Probal Sen and Hardik Solanki, ICICI Securities said, “The steep divergence between Asian LNG prices and the US Henry Hub benchmark continues to boost trading gains for GAIL, albeit with ~2mt of gas supply.” (~7mmscmd). Due to Gazprom’s ongoing geo-political issues, gas availability for the Petchem segment along with the gains of the business segment will be constrained for the rest of FY 2013E.”
According to analysts at ICICI Securities, the combination of strong demand, flexible margins and additional delta from the new gas pooling scheme (providing access to additional CGD volumes for GAIL’s gas trading segment) means GAIL will increasingly see higher inputs. Should be able to offset. Cost for Petchem and LPG segment over FY23EFY24E.
“We factor in lower margins for FY23E over our earlier estimates for the two segments, but this is offset by strong trading gains (Q1 EBITDA is 50% of our FY23 estimate). Our confidence in GAIL continues as is As mentioned in the foregoing, with valuations at attractive levels. Buy, “said the analysts with the target price 225 per.
Meanwhile, analysts Anil Sharma and Hemang Khanna of Kotak Institutional Equities said, “. In 1QFY23, GAIL’s core transmission, petchem and LPG business witnessed the impact of increase in gas cost. The cost pressure will intensify, while LPG/ Petchem prices are trending lower. We expect both segments to be very weak in the coming quarters. With Gazprom contract in bad weather, and overall shortage of GAIL LT LNG, the marketing outlook is also weak. Rs 115K Downgrade the cell with the revised fair value.”
On the other hand, Sharekhan analysts in their report said, “Global gas supply crisis (Gazprom calls for force majeure to stop LNG supply) volume-based earnings for GAIL’s core businesses till supply is restored by the gas supplier.” Creates headwinds. Absence of a precise timeline for normalization of gas supply position allows us to cut our earnings and EV/EBITDA multiplier for GAIL’s gas transmission, gas marketing and petrochemical business. Thus, we save GAIL by Rs 152. (By Buying) with a revised PT of Rs.100.
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