GAIL share price jumped over 5% to hit a 52-week high in early trade on Wednesday after the country’s largest gas distributor reported strong Q1 results bettering street estimates. GAIL shares rallied as much as 5.43% to Rs 246.35 apiece on the BSE.
Brokerages on GAIL
Citi on GAIL
In a report on GAIL, Citi has maintained a “Buy” rating with a target price of Rs 250. The report highlights a strong first quarter, with EBITDA coming in 33% ahead of estimates.
The outperformance was driven by stronger-than-expected results in the gas transmission and gas trading segments, though the petchem and LPG segments were weaker. Net income stood at Rs 27 billion, reflecting a 93% year-on-year increase and a 25% quarter-on-quarter rise.
UBS on GAIL
In a report on GAIL, UBS has maintained a “Buy” rating with a target price of Rs 250. UBS notes a strong Q1 FY25 standalone EBITDA of Rs 45.3 billion, driven by elevated earnings from the gas transmission and gas trading segments. The report emphasizes that the prospects for earnings growth are not fully priced in.
Q1FY25 Performance
State-owned GAIL reported a consolidated net profit of Rs 3,183 crore for the quarter ended June 2024, marking a 78% increase from Rs 1,793 crore in the same period last year. Revenue from operations rose 6% year-on-year to Rs 34,822 crore, up from Rs 32,849 crore in the corresponding period last year.
Sequentially, profit after tax increased by 29% from Rs 2,469 crore reported in the preceding March quarter. Revenue from operations also rose 6% compared to the fourth quarter of the previous fiscal year.
The company reported an EBITDA of Rs 4,790 crore for the reported quarter, an 80% increase from Rs 2,660 crore in the same period last year. EBITDA margins improved significantly to 13.8%.
Stocks Performance in Last One Year
In terms of stock performance, GAIL shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 10.34% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 41.95%, indicating a strong upward trend.
Year-to-date, GAIL shares have surged by 47.41%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 105.58% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
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