Motilal Oswal is bullish on GAIL India has recommended buy rating on the stock with a target price of Rs 154 in its research report dated August 12, 2019.
Motilal Oswal's research report on GAIL India
1QFY20 EBITDA was flat YoY at INR22.6b (in-line), led by better marketing segment performance, while petchem continued its poor performance. Depreciation was higher by 7% YoY, which was offset by lower interest cost (-46% YoY) and higher other income (+26% YoY). PAT stood in line with est. at INR12.9b (+2% YoY, -11% QoQ).
Valuing the stock at 8x FY21 adj. EPS of INR14.1, and adding contribution from the investment, we arrive at target price of INR154 (implying upside of ~24%).
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