GAIL India share price rose over 2 percent in the morning trade on March 8 after the government-owned firm said the board would meet on March 13 to discuss payment of an interim dividend for the financial year 2022-23.
If approved, the record date for the payment of the dividend would be March 21, the company told exchanges.
At 11.32 am, GAIL India was quoting at Rs 111.45, up Rs 2.40, or 2.20 percent, on BSE. It touched an intraday high of Rs 112.80 and an intraday low of Rs 109.40.
The scrip was trading with volumes of 1,275,289 shares, compared to its five-day average of 1,031,094 shares, an increase of 23.68 percent.
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Brokerages bullish
Global research and broking firm Morgan Stanley has a positive view on the company. The firm gave an “outperform” rating to GAIL India with a target price of Rs 124, which indicates a potential upside of 11 percent from the current price.
Morgan Stanley's optimistic stance stems from the Petroleum and Natural Gas Regulatory Board's proposal to increase tariffs for unified pipeline by 41 percent. If approved, the price hike is expected to result in a 25 percent increase in transmission revenue.
This development is expected to have a positive impact on GAIL India's earnings per share, with a potential increase of 12-14 percent, according to Morgan Stanley.
Earlier, CLSA retained the “buy” tag on the stock with a target price of Rs 125 a share.
The global research firm has upgraded GAIL India's FY24-25 earnings per share (EPS) estimates by 14 percent, factoring in a 40 percent tariff hike proposed by GAIL India.
According to the research firm, GAIL India's proposed tariff would result in a 70 percent hike from FY22 blended tariff, and the final announcement on the tariff hike is likely to be made in mid-March.
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