Dividend Yield 2.45%: Maharatna PSU Stock Falls 1.83% In 7-Days, Buy: Sharekhan

Renowned brokerage firm Sharekhan has recommended investors Maharatna multibagger stock GAIL (India) to buy and assigned the target price of Rs 190 apiece. GAIL (India) shares fell 1.83% in one-week and declined 1.77% intraday. Current market price of GAIL share on BSE is Rs 163.35 apiece. If you buy GAIL stock today at the current market price of Rs 163.35, you can fetch likely upside of 16.31%. GAIL (India) stock offered investors return of 69% in last 1-year and gained 89% in last 2-years. Check details below:

GAIL (India) Share Performance & Return: The 52-week high price of GAIL (India) share on BSE is Rs 169.35 apiece and 52-week low price is Rs 91.00 apiece, respectively. The company has a market capitalisation of Rs 1,07,404.25 crore. GAIL shares surged 55% in last 6-months, rose 98% in last 3-years, and offered return of 39% in last 5-years.

GAIL Dividend History: The company declared an interim dividend of Rs 4.00 per share in 2023 with ex-dividend date fixed as March 21, 2023. GAIL announced 46 dividends since September 3, 2001. In the last 12 months, GAIL (India) announced an equity dividend amounting to Rs 4.00 per share. At the current share price of Rs 163.35, it offers a dividend yield of 2.45%.

GAIL (India) Valuation: According to the analyst, "We have fine-tuned our FY24-26 earnings estimate. We expect GAIL to post a strong earnings recovery (expect EBITDA/PAT CAGR of 32%/28% over FY23-26E) across its business segments supported by stabilising global LNG supplies and improving price environment for its commodity businesses. Hence, we maintain a buy rating on GAIL with a revised PT of Rs. 190 (reflects rollover of valuation multiple to FY26 earnings estimate)."

GAIL (India) Financials: The large cap PSU Maharatna company announced a growth of 56% in its standalone profit for the quarter ended September 2023 to Rs 2405 crore as against Rs 1537.07 crore in the similar quarter of last fiscal. However, GAIL declared a fall of 17.32% in its total revenue to Rs 31,822 crore as compared to Rs 38,490.89 crore in the corresponding quarter of last year. It declared a surge of 67% in its profit before tax to Rs 3130.10 crore in Q2 of current fiscal as against Rs 1875.91 crore in the corresponding period of last year. The company's earnings per share surged to Rs 3.66 in Q2 from Rs 2.34 in September 2022 quarter.

About GAIL (India) Ltd: It was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company was initially given the responsibility of construction, operation & maintenance of the Hazira - Vijaypur -Jagdishpur (HVJ) pipeline Project. It was one of the largest cross-country natural gas pipeline projects in the world. Originally this 1800 Km long pipeline was built at a cost of Rs 1700 Crores and it laid the foundation for development of market for natural Gas in India. Government approved grant of Maharatna status to Gas Authority of India Ltd. (GAIL). This decision was communicated on 1st February, 2013.

Disclaimer:

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.