This PSU Gas stock which deals in the business of natural gas processing and distribution in India and holds a diversified business portfolio in the trading and sourcing of natural gas, LPG manufacturing was up by 7 percent after reporting a net profit growth of 52% quarter on quarter.
Price Movement
Gail (India) Limited‘s stock in Friday’s session touched a day’s high of Rs. 178.75 per share up by 7 percent. The stock reiterated from the day’s high and was trading at Rs. 176.55 which is 5.72 percent from the previous closing price of Rs. 167. The stock has delivered a return of around 2 percent in the past year and has underperformed the Nifty Index in the same period.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 36,937.05 crore which increased by 6.2 percent year on year, from Rs. 34,767.84 crore in Q3FY24 and an 8.69 percent increase from Rs. 33,981.33 crore in Q2FY25. Their net profit increased by 27.89 percent year on year, from Rs. 3,193.34 crores in Q3FY24 to Rs. 4,084.24 crores in Q3FY25. Quarterly, the profits increased by 51.84 percent from Rs. 2,689.67 crore.
The return on net worth for the Q3FY25 stood at 18 percent, RoCE at 17 percent, and Debt to Equity Ratio at 0.23 times.
Business Segments
As per the recent December 2024 results, the company recognizes its revenue from the Transmission Services segment (Natural Gas and LPG) which contributed around 6.31 percent, Natural Gas Marketing contributed around 78.48 percent, Petrochemicals segment contributed around 4.35 percent, 3.28 percent from LPG and Liquid Hydrocarbons, 7 percent from City Gas, 0.55 percent from Other segments. The Transmission services contribute higher operating profits compared to Natural Gas Marketing.
Dividend Announcements
Gail (India) Limited announced an interim dividend of Rs. 6.50 per equity share which is 65 percent on the face value of Rs. 10 per equity share totalling Rs. 4,273.81 crores. The record date is set on 07th February 2025.
Capex Plans
The company plans for a capital expenditure of approximately value of Rs. 8,480 crore. The major capex is planned towards Petrochemicals with an estimated investment of Rs. 2,062 crore and Pipeline of Rs. 2,000 crore for the FY25-26E.
Brokerage Target
Nomura, a reputed brokerage firm has a ‘Buy’ call with a Target Price of Rs. 240 per share.
Company Overview
GAIL (India) Limited was established in 1984. It is India’s largest natural gas company which is involved in transmission, petrochemicals, and marketing.
Written by Santhosh S
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