India’s fuel transmission and advertising sector is about for strong progress in FY26, pushed by a 6–7 p.c rise in gross sales for main firms and important pipeline community enlargement, almost 11,000 km deliberate. GAIL, a key participant, targets fuel advertising volumes of 105 mmscmd in FY26, whereas transmission volumes are anticipated to achieve over 127 mmscmd.
With a market capitalization of Rs 1,24,894.02 crore, the shares of Gail (India) Ltd had been buying and selling at Rs 189.95 per share, rising round 1.79 p.c as in comparison with the earlier closing value of Rs 186.85 apiece.
Jefferies, one of many well-known brokerages globally, maintains its ‘Purchase’ score on this oil inventory with a goal value of Rs 250 apiece, indicating a possible upside of 31 p.c from Friday’s value of Rs 190.60 per share.
In accordance with the brokerage, GAIL is eyeing a 33 p.c hike within the unified tariff to ₹78/mmbtu, pushed by a 6 p.c discount in pipeline capability underneath the PNGRB framework. Whereas the corporate expects a 20 p.c rise, Jefferies is conservatively estimating a ten p.c enhance. The ultimate unified tariff order is prone to be notified within the upcoming PNGRB board assembly.
Additionally learn: 2 Shares through which promoters elevated their stake within the firm
Jefferies estimates {that a} 10–20 p.c tariff hike might increase GAIL’s transmission EBITDA by 13–26 p.c in FY27 in comparison with present forecasts. This enchancment might additionally elevate GAIL’s Return on Capital Employed (ROCE) to 10–12 p.c, up from the current 8 p.c, indicating stronger operational effectivity and potential for enhanced shareholder returns.
Trying ahead to the corporate’s monetary efficiency, income elevated by 11 p.c from Rs 32,756 crore in Q4FY24 to Rs 36,442 crore in Q4FY25. Additional, throughout the identical time-frame, internet revenue elevated by 1.2 p.c from Rs 2,474 crore to Rs 2,506 crore.
GAIL has established a powerful international presence, with strategic operations and partnerships throughout key areas. Its footprint spans the USA, Russia, Egypt, China, Myanmar, and Singapore, reflecting GAIL’s dedication to worldwide enlargement and securing vitality belongings throughout international markets.
Written by Abhishek Singh
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