GAIL (India) (GAILF) AI Stock Analysis

GAIL (India)

(Other OTC:GAILF)

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Positive Factors

Balance-Sheet ResilienceModerate leverage gives GAIL financial flexibility to maintain its pipeline and gas investments while limiting balance-sheet strain. Growing equity and assets provide resilience for a capital-intensive, regulated utility-style business over the next several quarters.

Negative Factors

Margin CompressionThe FY26 deterioration in gross, operating, and net margins indicates that earnings are currently less efficient and less stable than at prior peaks. Persistent cost pressure or unfavorable pricing and product mix could limit profit growth even if revenue expands.

GAIL (India) (GAILF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $7.28B
Dividend Yield: 5.71%
Average Volume (3M): 204
Price to Earnings (P/E): 11.2
Beta (1Y): 0.48
Revenue Growth: 2.10%
EPS Growth: 5.65%
Country: US
Employees: 5,038
Sector: Utilities
Sector Strength: 66
Industry: Regulated Gas

GAIL (India) Business Overview & Revenue Model

Company Description

GAIL (India) Limited is an Indian state-owned enterprise primarily involved in the processing and distribution of natural gas, with the Government of India holding a majority ownership stake. Its principal business functions include the commercializa...

GAIL (India) Earnings Call Summary

Earnings Call Date:Nov 04, 2024(Q2-2025)|% Change Since:-20.81%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentNeutral

GAIL's earnings call reflected a robust first half of FY '25 with record profits and strong marketing margins. However, the second quarter witnessed a decline in gas marketing volumes and financial metrics compared to the first quarter, alongside challenges in LNG sourcing and increased operational expenses.

Positive Updates

Record-Breaking Profit Before Tax (PBT) and Profit After Tax (PAT)

GAIL registered its highest ever PBT and PAT of INR 7,095 crores and INR 5,396 crores, respectively, for the first half of the financial year '25.

Negative Updates

Decline in Gas Marketing Volumes

Gas marketing volume decreased to 96.60 MMSCMD in Q2 FY '25 from 99.47 MMSCMD in Q1 FY '25, mainly due to reduced gas consumption by the power sector.

Company Guidance

In the Q2 FY '25 earnings call for GAIL India Limited, the company reported significant financial metrics, including a stand-alone gross turnover of INR 32,814 crores, EBITDA of INR 3,453 crores, and PAT of INR 2,672 crores. On a consolidated basis, GAIL's turnover reached INR 33,861 crores with a PBT of INR 3,470 crores and PAT of INR 2,694 crores. The gas marketing volume for the quarter was 96.60 MMSCMD, while natural gas transmission volume stood at 130.63 MMSCMD. The average capacity utilization was 62%, with LPG transmission throughput at 1,124 TMT and a capacity utilization of 98%. The company incurred CapEx of INR 1,885 crores in Q2 and plans to achieve a marketing margin of at least INR 4,500 crores for the fiscal year, having already earned INR 3,287 crores in the first half of FY '25. Additionally, GAIL targets to increase its gas transmission volume by approximately 10 to 12 MMSCMD year-on-year over the next 2 to 3 years.

GAIL (India) Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

GAILF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
GB:TEP	61Neutral	GBP 686.58M	8.92	32.38%	5.55%	5.60%	5.05%
GB:CNA	59Neutral	GBP 6.92B	9.57	21.92%	3.71%	0.27%	―
GB:DRX	59Neutral	GBP 2.72B	53.87	1.10%	5.90%	-7.78%	-91.96%
GB:NG	59Neutral	GBP 63.06B	19.01	8.47%	3.87%	-3.76%	8.20%
GB:SSE	53Neutral	GBP 31.89B	25.75	9.45%	2.62%	0.54%	-2.65%

* Utilities Sector Average

Performance Comparison

GAILF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GAILF	Gail (India)	10.40	-1.64	-13.64%
GB:CNA	Centrica plc	152.70	-21.99	-12.59%
GB:DRX	Drax Group plc	808.00	119.28	17.32%
GB:SSE	Sse Plc (UK)	2627.00	779.95	42.23%
GB:TEP	Telecom Plus	901.00	-800.52	-47.05%
GB:NG	National Grid (Uk)	1254.50	164.35	15.08%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

GAIL (India) AI Stock Analysis