Brokerage firm Jefferies is bullish on shares of state-owned GAIL (India) Limited. The brokerage firm says GAIL should gain share in transmission once two major pipelines are commissioned in FY26. There is also a possibility that if there is an increase in tariffs by March, the rating of the transmission business may increase again. Additionally, it is also estimating 9 percent EBITDA CAGR during FY24-27.
Recently, this PSU company has entered into an agreement with Kawasaki Kisen Kaisha, Ltd for a long-term charter hire of a new built LNG vessel. The LNG ship will be a modern two-stroke vessel with a tank capacity of 1,74,000 cubic metres, and will be built by Samsung Heavy Industries Co Ltd, Korea, with which the ship owning company has entered into a shipbuilding contract.
GAIL’s new target
Jefferies has reduced the target price to ₹235 from ₹240 while maintaining BUY rating. The brokerage firm says the trading profit outlook in H2FY25 is positive. India’s gas demand outlook remains strong, driven by new production/LNG contracts and increasing pipeline connectivity.
GAIL (India) Limited is a member of BSE 100. According to BSE analysis (as of December 4), GAIL shares have given positive returns of 3.15 percent and 7.21 percent in the last 1 week and 2 weeks. However, in the last 1 month and 3 months these shares have fallen by 0.10 percent and 14.02 percent. Shares of the state-owned company have gained 20.26 per cent on a YTD basis. In the last 1 year, 2 years, 3 years, 5 years and 10 years, the company’s shares have given returns of 46.90 percent, 114.59 percent, 126.73 percent, 142.69 percent and 126.04 percent.
GAIL Dividend
This year GAIL declared a dividend of ₹5.50 in February. This PSU company had given a dividend of ₹4 in 2023. In 2022 also, the company had declared a dividend of ₹5 in March and ₹1 in August.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.