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Last Updated : Apr 05, 2018 05:34 PM IST | Source: Moneycontrol.com

Buy Gail India; target of Rs 530: Axis Direct

Axis Direct is bullish on Gail India has recommended buy rating on the stock with a target price of Rs 530 in its research report dated February 19, 2018.

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Axis Direct's research report on Gail India


PAT at Rs 12.6 bn was in line with our estimate. Gas transmission volume stood at record 109 mmscmd on continued higher offtake from power sector and higher spot demand from fertilizer sector. Trading business EBIT was hit by seasonally higher gas cost. Petchem business EBIT was down YoY due to lower price realization from heightened domestic competition. LPG EBIT strong on higher price realization.

Outlook

Net effect of these changes is neutral on our TP, which remains unchanged at Rs 530. Upgrade to BUY after the recent stock correction. At CMP, GAIL trades at ~6x FY20E EBITDA (ex-investments).

For all recommendations report, click here


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First Published on Feb 19, 2018 03:50 pm
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