Motilal Oswal Recommends – Buy Gail India – Target Price is Rs 150

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Motilal Oswal Recommends – Buy Gail India – Target Price is Rs 150

Motilal Oswal Recommends – Buy Gail India – Target Price is Rs 150

Motilal Oswal Recommends – Buy Gail India – Target Price is Rs 150

Motilal Oswal has given a BUY rating for Gail Limited. Gail is the large cap company that has Rs 39,800+ Cores. Gail has a track record of paying consistent dividends. Its dividend in 2020 is 7.4% on the current market price of Rs 86.

About Gail India Limited

Gail India Limited is incorporated in 1984 and is a large cap company having a market capitalization of Rs 39,800+ Crores. Gail India limited is the government owned enterprise. Gail is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. It is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas.

Gail Financial Performance

Gail consolidated revenues declined by 34% from Rs 18,467 of Q1 FY19 to Rs 17,922 Crores in Q1 FY20.

Its revenues have declined by 32% in Q1 FY20 compared to Q4 FY19.

The company declared profits of Rs 192.7 for Q1 FY20.

The company has a good dividend track record.

The company declared a 76.5 % dividend in Jan-2018, 62.5% in Feb-2019 and 64% in Feb-2019. It also declared interim dividend of 14% in Aug-18 and 8.8% in Aug-19.

Promoter Holdings

Gail India Limited promoter holdings are 51% as of end of June 30, 2020. FIIs held 16%, DIIs 27% and public 4.9%.

Motilal Oswal Recommends – Buy Gail India – Target Price is Rs 150

Motilal Oswal believes that Gail would clock strong performance post covid-19 lock down. It believes that currently the stock is trading at 5.7x of FY22 EPS of Rs 15.3 and 4.5x o FY22 EV/EBITDA, which is a 50 % discount to its last 5 years average EPS. Motilal Oswal believes that this is an excellent opportunity for investors to invest in Gail India Limited.

Current stock price is Rs 86 and Motilal Oswal gives BUY rating with target price is Rs 150.

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