Why GAIL has enough gas in the tank for the investor
We view GAIL as a strong, near-monopoly business model, which alone should drive secular, sustainable growth in future
June 22, 2021 / 02:51 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
GAIL’s (CMP: Rs 161.75, Market Capitalisation: Rs 71,823 crore) Q4 FY21 results reflected the ongoing recovery from COVID across businesses and improving per-unit realisation.
With the impact of the second wave of COVID-19 receding broadly, GAIL is now in a position to take benefit of the demand recovery to drive the revenue growth and margin expansion in the transmission, trading, and petrochemical segments.
We expect GAIL to realise better revenue and margins in the medium term. Despite a stock price rally...