Motilal Oswal has given Buy on the stock with a revised price target (PT) of Rs. 20 recommendation for GAIL with a target price of Rs. lal Oswal is bullish on GAIL has recommended buy on the stock with a revised price target (PT) of Rs. 205 in its research report issued on Feb 03, 2022
Gas transmission volumes were flattish at 114mmscmd during the quarter. Currently, it has declined to 104mmscmd as few fertilizer plants have taken shutdown. The management expects to reach volumes of 110mmscmd once the fertilizer plants that are currently shut down resume operations. Annually, 5-6% growth is expected. Owing to the beat on our estimates in 3QFY22 results, we revise up our EBITDA/EPS estimates by 7%/ 8% for FY22E, keeping our estimates unchanged for FY23–24E. The stock is currently trading at 6.6x FY22 adj. EPS of INR 22.5. We value the core business at 10x FY24E adj. EPS of INR 17, and adding the value of listed and unlisted investments of INR 35, we arrive at Target Price of INR 205/share.