Shares of GAIL (India) soared 7 per cent in early commerce on Friday publish recording a 28 per cent improve in consolidated web revenue for the quarter ended December 2024 at ₹4,084.24 crore as in opposition to ₹3,193.34 crore within the corresponding quarter earlier 12 months.
The inventory closed 6.04 per cent constructive on the NSE at ₹177.20, after hitting a excessive of ₹178.87.
Analysts had been divided, a majority having retained purchase scores as a consequence of regular general prospects of the corporate, whereas some have flagged considerations over advertising volatility and earnings miss.
Motilal Oswal emphasised that the Q3 efficiency was considerably beneath estimates, primarily as a consequence of weak fuel advertising phase efficiency.
The brokerage added that the transmission volumes had been weaker as a consequence of a decline in energy sector demand within the quarter, whereas adversarial unfold motion on a number of the fuel contracts led to decrease profitability on a number of the advertising contracts.
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ICICI Securities believed that the prospects stay regular for the corporate which ought to drive a interval of sustained efficiency over the following couple of years. “Rising home fuel provides, LNG liquefaction capability and the expectation of comparatively average pricing of the identical together with the normalisation of LPG costs are all positives,” it added.
Each brokerages have reiterated purchase name on the goal value of ₹255.
Elara Capital analysts have slashed the goal value on GAIL from ₹263 to ₹234, to factor-in decrease fuel advertising margin and subdued earnings from LPG & Liquid Hydrocarbons (LHC) segments. They foresee fuel transmission quantity to develop at a strong tempo, as a consequence of pipeline connectivity with new areas, rising CGD demand and robust progress plans of ONGC and Oil India as regards manufacturing.
Analysts of Emkay World have retained purchase at a goal value of ₹220 primarily based on engaging valuation and upcoming pipeline tariff triggers. They’ve additionally indicated key dangers similar to adversarial commodity value and margins, foreign money fluctuations, laws, outages, and challenge delays.
Nomura, sustaining purchase at a goal value of ₹240, said that the outcomes sharply missed estimates as a consequence of decrease fuel advertising and petchem profitability.
Alternatively, Nuvama Institutional Equities has downgraded the inventory to ‘scale back’ at a goal value of ₹159, reasoning the unstable advertising earnings. The brokerage continues to watch volatility within the pure fuel advertising earnings.
