Motilal Oswal - GAIL (India) Limited (GAIL) MOSL: GAIL INDIA (Neutral)-Trading shines, Petrochem disappoints

Report

Motilal Oswal

Swarnendu Bhushan

MOSL: GAIL INDIA (Neutral)-Trading shines, Petrochem disappoints

GAIL India: Trading shines, Petrochem disappoints

(GAIL IN, Mkt Cap USD11.5b, CMP INR371, TP INR371, Neutral)

GAIL’s numbers are not comparable with our estimates or previous year/quarter numbers due to the retrospective impact of the recent tariff revisions. The company reported net operating income of INR193b, EBITDA of INR29.3b and PAT of INR19.6b.

Segmental analysis: Gas trading shines, Petrochem disappoints

Gas transmission EBIT stood at INR8.9b. It includes the retrospective impact of the Petroleum and Natural Gas Regulatory Board’s (PNGRB) tariff orders. Transmission volume stood at 106mmscmd. A retrospective gain amounting to INR1b for the previous quarter was booked in 2QFY19.
Gas trading volume stood at 96mmscmd. EBIT came in at INR10.4b – includes one-time gain of INR1.33b on account of favorable settlement with a power consumer.
Petrochem sales stood at 183tmt. EBIT came in at INR1.7b.
LPG and HC sales stood at 338tmt. EBIT stood at INR7.7b.

06/11/2018 14 EN

Underlying

GAIL (India) Limited

Gail India is engaged in the natural gas, liquified natural gas ("LPG"), liquid hydrocarbons and petrochemicals exploration and production and city gas distribution through its natural gas trunk pipelines covering a length of around 7000 km and over 1900 km of LPG pipeline transmission network. Co. is also engaged in the telecom business with the network of approx. 13,000 km throughout India. Co. operates six primary business segments: Transmission Services, Natural Gas Trading, Petrochemicals, LPG and other Liquid Hydrocarbons, GAILTEL and City Gas Distribution.

See profile

INE129A01019 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Swarnendu Bhushan

Other Reports on these Companies

Motilal Oswal

MOSL : GAIL: Strong showing by the Gas Trading segment; supply from Gazprom remains a concern in 2QFY23

. GAIL: Strong showing by the Gas Trading segment; supply from Gazprom remains a concern in 2QFY23 (GAIL IN, Mkt Cap USD7.7b, CMP INR140, TP INR176, 26% Upside, Buy) GAIL reported a 31%/33% beat on EBITDA/PAT in 1QFY23 as strong gains in the Trading business offset other weak segments. Operating performance in the Transmission and Petrochemicals segment decreased on a YoY and QoQ basis. Gazprom triggered the force majeure clause on ~2.5mmt of volume (~14mmt of its total LNG portfolio), which will ultimately mean higher gas prices. As a few consumers may not be able to afford higher gas p...

EUR 120.00

August 5, 2022 August 5, 2022 10 EN

TheScreener

GAIL (INDIA) is downgraded to Slightly Positive due to increased risk

The independent financial analyst theScreener just slightly lowered the general evaluation of GAIL (INDIA) (IN), active in the Pipelines industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars. Its market behaviour, however, has slightly deteriorated and can be now qualified as moderately risky. This risk increase, even if marginal, forces theScreener to slightly downgrade the title, which now displays an overall rating of Slightly Positive. As of the analysis date February 18, 2022, the closing price was INR 140.85 and its potential was estimated at I...

Free Trial

February 19, 2022 February 19, 2022 1 EN

Independent Investment Research

Monthly LMI Update Independent Investment Research

Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked. This compares to the total dividends of 5 cents per share in FY20. The Board has confirmed that, in...

August 6, 2021 August 6, 2021 10 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: GAIL INDIA (Neutral)-Trading shines, Petrochem disappoints

MOSL : GAIL: Strong showing by the Gas Trading segment; supply from Gazprom remains a concern in 2QFY23

GAIL (INDIA) is downgraded to Slightly Positive due to increased risk

Monthly LMI Update Independent Investment Research

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe