GAIL (India) Ltd (GAIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Aegis Logistics

Confidence Petro

GAIL (India)

Petronet LNG

Adani Total Gas

IRM Energy

Gujarat Energy

Indraprastha Gas

Guj.St.Petronet

Mahanagar Gas

Positron Energy

Why is GAIL (India) Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.16 times

With a fall in Net Sales of -0.11%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
ROCE(HY) Lowest at 9.39%
PAT(Q) Lowest at Rs 1,484.72 cr.
PBDIT(Q) Lowest at Rs 1,453.39 cr.

With ROCE of 6.9, it has a Very Attractive valuation with a 1.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.57%, its profits have fallen by -28.2%
At the current price, the company has a high dividend yield of 3.5

High Institutional Holdings at 41.44%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

With its market cap of Rs 1,13,782 cr, it is the biggest company in the sector and constitutes 42.70% of the entire sector

Its annual Sales of Rs 141,597.72 are 68.62% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GAIL (India) should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GAIL (India) for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

GAIL (India)

-4.94%

-0.19

24.64%

Sensex

-5.71%

-0.42

13.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.80%

EBIT Growth (5y)

8.64%

EBIT to Interest (avg)

22.87

Debt to EBITDA (avg)

1.49

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.37

Tax Ratio

22.04%

Dividend Payout Ratio

39.61%

Pledged Shares

Institutional Holding

41.44%

ROCE (avg)

10.97%

ROE (avg)

12.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.28

EV to EBIT

17.78

EV to EBITDA

11.86

EV to Capital Employed

1.22

EV to Sales

0.96

PEG Ratio

Dividend Yield

3.47%

ROCE (Latest)

6.87%

ROE (Latest)

8.51%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 16.51 times

-24What is not working for the Company

ROCE(HY)

Lowest at 9.39%

PAT(Q)

Lowest at Rs 1,484.72 cr.

PBDIT(Q)

Lowest at Rs 1,453.39 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 4.09%

PBT LESS OI(Q)

Lowest at Rs 1,174.95 cr.

NON-OPERATING INCOME(Q)

is 40.25 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 2.26

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Here's what is working for GAIL (India)

Debtors Turnover Ratio- Half Yearly

Highest at 16.51 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for GAIL (India)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,174.95 cr has Fallen at -52.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2,471.50 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1,484.72 cr has Fallen at -30.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2,147.38 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Lowest at Rs 1,484.72 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 1,453.39 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 4.09%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1,174.95 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 40.25 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.26

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 791.42 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income