One of the large-cap natural gas stock has surged to 2.8% after getting rating upgrades from Jefferies and Morgan Stanley. Furthermore, the company has reported quarterly results. It showed an increase in revenue of 2.73 percent YOY and a net profit increase of 10 percent YOY in Q2 FY25.
Share Price Movement
The share price of Gail India Limited went up by 2.8 percent to Rs. 214 per share on Thursday, a significant rise from its previous close of Rs. 208.9 per share. The market capitalisation now stands at approximately Rs. 1,41,206 crore as of November 07, 2024.
What Happened
GAIL (India) Limited’s stock price surged 2.8% following rating upgrades. Notably, Jefferies and Morgan Stanley upgraded their ratings for the natural gas giant.
According to its recent filing, in the quarter ending September 2024, GAIL (India) Limited’s consolidated revenue from operations has increased by 2.73 percent YOY, from Rs. 32,986 crore in Q2 FY24 to Rs. 33,889 crore in Q2 FY25, and has declined by 2.44 percent QoQ from Rs. 34,738 crore in Q1 FY25.
The company’s consolidated net profit has increased by 10.15 percent, from Rs. 2,442 crore in Q2 FY24 to Rs. 2,690 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit is down by 15.48 percent QoQ from Rs. 3,183 crore.
The company’s EPS has increased by 10.21 percent from Rs. 3.72 in Q2 FY24 to Rs. 4.10 in Q2 FY25.
Target price
Jefferies: Upgraded GAIL to a ‘buy’ with a target price of ₹240, implying a 12% upside. The broking highlights gains from new pipelines and improved gas transmission, despite slightly lower-than-expected EBITDA.
Morgan Stanley: maintained an ‘overweight’ stance with a ₹258 target, seeing a 20% upside due to robust ROE and expansion.
Shareholding Pattern:
As of the November 2024 shareholding pattern, Gail India Limited is primarily held by the promoter with 51.92 percent, foreign institutional investors hold 16.79 percent, and the public by 6.76 percent.
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About the company
In a remarkable journey spanning four decades, GAIL India Limited has emerged as India’s premier state-owned natural gas processing giant. Initially established in 1984, GAIL now stands as a cornerstone of India’s energy infrastructure, with the government holding a commanding more than 51.
Furthermore, this energy powerhouse maintains a robust market presence, boasting an impressive market capitalisation of ₹1,37,228 crores on major stock exchanges.
GAIL’s operational excellence shines through its diverse business portfolio and extensive infrastructure development. Most notably, the company manages an impressive 11,000-kilometre pipeline network, ensuring seamless natural gas distribution nationwide.
Additionally, GAIL’s business segments encompass LPG production, petrochemical manufacturing, and strategic investments in oil and gas exploration. Meanwhile, the company’s commitment to innovation drives its recent expansion into synthetic natural gas projects. Consequently, GAIL’s financial performance remains strong, with a current share price of ₹208.30 and a healthy earnings per share of ₹17.17.
In conclusion, GAIL’s transformation into a Maharatna company reflects its exceptional growth and vital role in India’s energy sector. Moreover, the company’s strategic focus on sustainability and renewable energy positions it perfectly for future challenges.
Written By Fazal Ul Vahab C H
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