GAIL India Q2 Results Review - Good Show; Positive Outlook; Maintain 'Accumulate': Dolat Capital

Dolat Capital Report

GAIL India Ltd.’s Q2 FY25 Ebitda/profit after tax came +3%/+17% above our estimates mainly driven by-

1. strong performances in petrochemical and OLHC/LPG and

2. lower tax rate of 23%, jump in other income by 27% YoY and sequential sharp decline in depreciation.

The company has maintained its transmission volume guidance of 132/142/152 million metric standard cubic metre per day for FY25E/FY26E/FY27E. Additionally, gas trading Ebitda guidance has set at Rs 45 billion for FY25, likely to be revised upward in Q3, as the GAIL has already achieved ~75% of Ebitda in H1 FY25.

We tweak our FY25E/FY26E Ebitda estimates by -9%/-7% on account of-

1. moderated margins assumptions for petrochemical & OLHC; and

2. slight increase in gas cost for transmission with a cut in trading volume assumptions.

We maintain ‘Accumulate’ rating with revised SoTP-based target price of Rs 235 (earlier Rs 252).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.