Dolat Capital recommended Accumulate rating on GAIL (India) with a target price of Rs 396 in its research report dated May 29, 2019.
Dolat Capital's research report on GAIL (India)
GAIL’s Q4FY19 revenue were in line with our estimates. Profitability was below our estimate, due to weakness in the petchem, LPG, and LHC business, which was offset by the gas marketing business. Considering the volatility in crude oil, performance in the gas marketing segment is commendable and lead us to believe that H1FY20 results will be robust. The management continues to guide that all cargoes expected in short term are completely hedged. The gas transmission volumes at 109 MMSCMD were marginally below our estimate and we do not expect it to increase significantly in FY20.
The risk to our call remains a significant decline in profitability in the gas marketing segment. We maintain Accumulate, with a TP of ` 396. (13x FY21E).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .