GAIL (India) Ltd - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs250, Upside: 75%)

- Operating Profit and PAT stood at Rs 24.1bn (+287% YoY; -6% QoQ) and Rs 15.3bn (+497% YoY; -20% QoQ). The 1QFY21 earnings were adversely impacted by impact of Covid-2nd wave and planned maintenance under-taken by GAIL at its PATA petrochemical plant, impacting production and sales of petrochemicals.

- However, going ahead earnings are expected to improve across segments as a) commissioning of four fertilizers plants on GAIL's network between Aug'21 and May'22 is likely to boost volume by 10-12mmscmd, b) Petrochemical production and sales would be restored to normalized levels post maintenance; GAIL expects to achieve 100% utilization on annualized basis and c) the profitability in the gas trading segment is expected to remain healthy as new fertilizer help consumer imported US LNG cargoes

- Maintain BUY with a Mar'23 TP of Rs 250/sh.

Shares of Gail (India) Ltd. was last trading in BSE at Rs. 142.9 as compared to the previous close of Rs. 142.45. The total number of shares traded during the day was 1484855 in over 10115 trades.

The stock hit an intraday high of Rs. 145.5 and intraday low of 140.35. The net turnover during the day was Rs. 212987285.

Source : Equity Bulls

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