GAIL India share price rises nearly 4% despite weak market; brokerages keep 'buy'

Research house CLSA maintained 'buy' with a target at Rs 170 per share.

March 31, 2021 / 11:44 AM IST
 
 
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GAIL India share price rose nearly 4 percent intraday on March 31, despite selling seen in the domestic equity market.

The Sensex was down 419 points, or 0.84 percent, at 49,717.58 and the Nifty was down 99.20 points, or 0.67 percent, at 14745.90, however, the share was the top gainer on the Nifty index.

The Nifty energy index shed 0.4 percent dragged by Power Grid, Adani Green, ONGC and BPCL. However, Gail India remained the top gainer in the index.

GAIL (India) Ltd is India`s flagship natural gas company integrating all aspects of the natural gas value chain including exploration and production, processing, transmission, distribution and marketing and related services.

Goldman Sachs has maintained a "buy" call on the stock with a target at Rs 180 per share. According to Goldman Sachs, the company will be a beneficiary of disruption-led strength in PE prices, while cyclical recovery in prices from supply lagging demand will help.

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There was a structural growth in pipeline gas volumes and sequential growth was expected to continue with 20 percent EBITDA growth QoQ in Q4, reported CNBC-TV18.

Research house CLSA also maintained "buy" with a target at Rs 170 per share. The positive leverage to crude prices is possibly being ignored and despite favourable tailwinds, the company trades at a core PE of just 7.1x, CNBC-TV18 quoted CLSA as saying.

At 1114 hours, GAIL India was quoting at Rs 136.55, up Rs 4.10, or 3.10 percent, on the BSE.

The share touched a 52-week high of Rs 157.95 on March 8, 2021 and a 52-week low of Rs 67.60 on March 30, 2020. It is trading 13.55 percent below its 52-week high and 102 percent above its 52-week low.

gail

The company's trailing 12-month (TTM) EPS was at Rs 13.30 per share (December 2020). The stock's price-to-earnings (P/E) ratio was 10.26.

The latest book value of the company is Rs 97.49 per share. At current value, the price-to-book value of the company was 1.4. The dividend yield was 4.69 percent.

The share price has jumped more than 92 percent over the last 1-year.

Disclaimer: The above report is compiled from information available on public platforms/CNBC-TV18. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Mar 31, 2021 11:44 am

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