ICICI Direct has given Hold recommendation for Gail (India) with a target price of Rs. 150 in its research report issued on Feb 12, 2021
ICICI Direct’s research report on Gail (India)
Gail India reported a mixed set of Q3FY21 results. While gas transmission and petchem segments’ performance was better than expected, gas trading and LPG/LLH performance was weaker than anticipated. Revenues for the quarter declined 13% YoY to Rs 15454.3 crore. EBITDA was at Rs 1919.5 crore, down 7.4% YoY against our estimates of Rs 1956.8 crore. Gail reported higher than expected other income of Rs 470.8 crore. Subsequently, the reported PAT at Rs 1487.3 crore, up 18.9% YoY (profitability aided by lower tax rate) was above our estimate of Rs 1275.4 crore.
Outlook
We roll over valuations to FY23E and maintain HOLD with a revised TP of Rs 150/share (earlier: Rs 105).