Moneycontrol
Last Updated : Nov 19, 2018 04:17 PM IST | Source: Moneycontrol.com

Accumulate GAIL (India); target of Rs 422: Dolat Capital

Dolat Capital recommended accumulate rating on GAIL (India) with a target price of Rs 422 in its research report dated November 12, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on GAIL (India)


GAIL Q2FY19 numbers were ahead of estimates mainly driven by higher realizations and strong performance in the gas transmission and trading segments. Higher pipeline tariffs for some of the pipelines and a onetime settlement of ` 1.3 bn boosted profitability. Gas trading volume grew by 14% due to the spread expansion in Henry Hub and spot LNG prices. Volume outlook on gas transmission looks stable driven by the increase in gas availability and addition of Kochi Mangalore Pipeline. Long pending tariff for GAIL main pipelines is another key trigger. Reiterate our Accumulate recommendation with a target price of ` 422.


Outlook


With key trigger of pipeline tariff hike likely to go through in next 2 quarters and GAIL adding pipeline capacity, volume and profitability outlook gets better. We Reiterate our Accumulate recommendation with a target price of ` 422.


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.

First Published on Nov 19, 2018 04:17 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant