Shares of GAIL (India) soared 7 per cent in early commerce on Friday submit recording a 28 per cent enhance in consolidated web revenue for the quarter ended December 2024 at ₹4,084.24 crore as in opposition to ₹3,193.34 crore within the corresponding quarter earlier yr.
The inventory closed 6.04 per cent constructive on the NSE at ₹177.20, after hitting a excessive of ₹178.87.
Analysts have been divided, a majority having retained purchase rankings attributable to regular total prospects of the corporate, whereas some have flagged considerations over advertising volatility and earnings miss.
Motilal Oswal emphasised that the Q3 efficiency was considerably under estimates, primarily attributable to weak fuel advertising section efficiency.
The brokerage added that the transmission volumes have been weaker attributable to a decline in energy sector demand within the quarter, whereas hostile unfold motion on among the fuel contracts led to decrease profitability on among the advertising contracts.
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ICICI Securities believed that the prospects stay regular for the corporate which ought to drive a interval of sustained efficiency over the following couple of years. “Rising home fuel provides, LNG liquefaction capability and the expectation of comparatively reasonable pricing of the identical together with the normalisation of LPG costs are all positives,” it added.
Each brokerages have reiterated purchase name on the goal value of ₹255.
Elara Capital analysts have slashed the goal value on GAIL from ₹263 to ₹234, to factor-in decrease fuel advertising margin and subdued earnings from LPG & Liquid Hydrocarbons (LHC) segments. They foresee fuel transmission quantity to develop at a sturdy tempo, attributable to pipeline connectivity with new areas, rising CGD demand and robust development plans of ONGC and Oil India as regards manufacturing.
Analysts of Emkay World have retained purchase at a goal value of ₹220 primarily based on enticing valuation and upcoming pipeline tariff triggers. They’ve additionally indicated key dangers akin to hostile commodity value and margins, foreign money fluctuations, rules, outages, and venture delays.
Nomura, sustaining purchase at a goal value of ₹240, said that the outcomes sharply missed estimates attributable to decrease fuel advertising and petchem profitability.
However, Nuvama Institutional Equities has downgraded the inventory to ‘cut back’ at a goal value of ₹159, reasoning the risky advertising earnings. The brokerage continues to look at volatility within the pure fuel advertising earnings.
