Buy Gail; target of Rs 383: ICICI Direct

ICICI Direct's research report on Gail

Gail had made an announcement on bonus shares on February 12, 2018. The ratio was one bonus share for every existing equity share i.e. 1:3. The stock has turned ex-bonus today while the record date for the same is March 29, 2018. Consequently, Gail's share price, as per yesterday's closing price, has dropped to | 318/share from | 424/share. Hence, now our target price also stands revised to | 383/share post bonus issue of equity shares.

Outlook

We value the company using the SOTP methodology, valuing the core business using DCF and assigning a target multiple to the EBITDA of other business segments. We have a BUY recommendation on Gail with a target price of | 383. For all recommendations report, click here

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