Shares of GAIL (India) soared 7 per cent in early commerce on Friday publish recording a 28 per cent improve in consolidated internet revenue for the quarter ended December 2024 at ₹4,084.24 crore as towards ₹3,193.34 crore within the corresponding quarter earlier yr.
The inventory closed 6.04 per cent optimistic on the NSE at ₹177.20, after hitting a excessive of ₹178.87.
Analysts have been divided, a majority having retained purchase rankings because of regular total prospects of the corporate, whereas some have flagged issues over advertising and marketing volatility and earnings miss.
Motilal Oswal emphasised that the Q3 efficiency was considerably under estimates, primarily because of weak gasoline advertising and marketing phase efficiency.
The brokerage added that the transmission volumes have been weaker because of a decline in energy sector demand within the quarter, whereas antagonistic unfold motion on a number of the gasoline contracts led to decrease profitability on a number of the advertising and marketing contracts.
- Additionally learn: Financial institution of Baroda cuts NIM steerage after Q3 revenue beat
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 gasoline provides, LNG liquefaction capability and the expectation of comparatively reasonable 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 worth of ₹255.
Elara Capital analysts have slashed the goal worth on GAIL from ₹263 to ₹234, to factor-in decrease gasoline advertising and marketing margin and subdued earnings from LPG & Liquid Hydrocarbons (LHC) segments. They foresee gasoline transmission quantity to develop at a sturdy tempo, because of pipeline connectivity with new areas, rising CGD demand and powerful progress plans of ONGC and Oil India as regards manufacturing.
Analysts of Emkay International have retained purchase at a goal worth of ₹220 based mostly on engaging valuation and upcoming pipeline tariff triggers. They’ve additionally indicated key dangers corresponding to antagonistic commodity worth and margins, foreign money fluctuations, laws, outages, and venture delays.
Nomura, sustaining purchase at a goal worth of ₹240, acknowledged that the outcomes sharply missed estimates because of decrease gasoline advertising and marketing and petchem profitability.
Alternatively, Nuvama Institutional Equities has downgraded the inventory to ‘scale back’ at a goal worth of ₹159, reasoning the risky advertising and marketing earnings. The brokerage continues to watch volatility within the pure gasoline advertising and marketing earnings.
