Motilal Oswal has a buy rating on GAIL India in the long term with a target price of Rs 150. Shares of GAIL India ended up 0.9% at Rs 129.65 on Friday while the
Sensex closed 263.86 points up 37,332.79.
Company Financials
For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 18467.44 crore, down -3.14 % from last quarter sales of Rs 19065.47 crore and up 5.14 % from last year same quarter sales of Rs 17564.00 crore. The company has reported net profit after tax of Rs 1246.51 Crore in latest quarter.
Investment Rationale
The completion of three fertiliser plants along the Jagdishpur-HaldiaBokaro-Dhamra pipeline (JHBDPL), combined with the contribution from Matix Fertilizer startup and Mangalore Chemicals and Fertilizers (MCFL) conversion, is likely to de-risk ~60% of total US Henry Hub (HH) contracts, said Motilal Oswal. The brokerage said the stock presents an attractive investment opportunity as it is trading at a discount of around 40% to long term one-year forward PE of 14 times.