Moneycontrol
Get App
Last Updated : Feb 14, 2019 03:40 PM IST | Source: Moneycontrol.com

Buy GAIL; target of Rs 406: HDFC Securities

HDFC Securities is bullish on GAIL has recommended buy rating on the stock with a target price of Rs 406 in its research report dated February 05, 2019.

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

HDFC Securities' research report on GAIL


GAIL’s 3QFY19 revenue was Rs 197.89bn, up 37.3% YoY. A strong performance from the NG marketing and LPG/LHC segments led to a 35.7% YoY increase in EBITDA to Rs 26.73bn. PAT for the quarter stood at Rs 16.81bn (up 33% YoY). GAIL was able to garner a higher marketing margin on its US LNG volumes during Q3, despite the volatility in Henry Hub (HH) prices through a combination of overseas and destination swapping. NG marketing volume was up 9.5% YoY to 96mmscmd, while trading margin was up 80.8% YoY to Rs 0.76/scm.


Outlook


Our SOTP target is Rs 406 (7.5x Dec-20E EV/e for the more stable Gas and LPG tran. busi. and 5.0x EV/e to more volatile gas marketing busi. And 6.5x EV/e for the cyclical petchem and LPG/LHC busi.), Rs 73 for investments and Rs 18/sh for CWIP. Maintain BUY.


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 Feb 14, 2019 03:40 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant