ICICI Direct has given Hold recommendation for Gail (India) with a target price of Rs. 180 in its research report issued on Jun 14, 2021
ICICI Direct’s research report on Gail (India)
Gail India reported a mixed set of Q4FY21 results. While gas trading & transmission and petchem segments’ performance was better than expected, LPG/LLH performance was weaker than anticipated. Revenues for the quarter declined 12.4% YoY to Rs 15546.2 crore. EBITDA was at Rs 2564.8 crore, up 3.6% YoY against our estimates of Rs 2621.3 crore. Gail reported higher-than-expected other income of Rs 568.4 crore. Subsequently, reported PAT was at Rs 1907.7 crore, down 36.8% YoY (negative tax outgo in base quarter) against our estimate of Rs 1883.1 crore.
We value Gail using the SOTP methodology, valuing the core business using DCF and EV/EBITDA multiple for other business segments. We maintain HOLD with a revised target price of Rs 180/share (earlier Rs 150).