ANALYSIS OF GAIL INDIA LIMITED

20BSP1623
PRACHI DAS
IBS G
INTRODUCTION TO GAIL INDIA LTD.
• Established in August 1984 as a Central Public Sector Undertaking
(PSU) under the Department of Petroleum Resources and Natural
Gas (MoP & NG).
• It is India’s “Principal gas transmission & marketing
company”. 
• GAIL owns the country's largest pipeline network, the cross-
country 2300 km Hazira-Vijaipur-Jagdishpur pipeline with a
capacity to handle 33.4 million cubic metre per day at standard
conditions gas.
• It’s headquartered in DELHI.
 Management OF GAIL INDIA LTD.
• Chairman & Managing Director, and Director (Projects), GAIL.
• Shri Manoj Jain
• Director (HR)
• Shri P.K. Gupta
• Director (Finance)
Shri Anjani Kumar
Shri Manoj Jain(34 years of Shri P.K. Gupta( 35 years of
Tiwari( 25 years of work-
• Shri Anjani Kumar Tiwari work-ex with Gail) work-ex)
ex)

• Director (Marketing)
• Shri E.S. Ranganathan
• Director (Business Development)
• Shri M V Iyer
Shri E.S. Ranganathan( 35 Shri M V Iyer( 33 years of
years of work-ex) work-ex)
 DATA ON LAST 3 YEARS
• BOD: Not changed in last 3 years.
PAT(IN CRORES)
9422.05
• PAT(in crores)
10000
8000
6545.74
6000
4799.07
4000
2000
0
2018 2019 2020

PAT(IN CRORES)

• INTERIM DIVIDEND
2018 2019 2020
7.65/share 6.25/share 6.4/share
• RATIOS RATIOS
80 73.27
70
68.93 RETURN ON CAPITAL
60 EMPLOYED(ROCE) FOR
50
PAST 5 YEARS:
40
30 26.19 26.72 Mar 16: 8%
20.48
20 14.68 Mar 17: 12%
10 8.02 6.51 5.21
0.02 0.02 0.12 Mar 18: 16%
0
P/E Ratio ICR D/E Ratio EPS Mar 19: 21%
Constant
2018 2019 2020 Mar 20: 21%

• RETURN ON EQUITY NET INCOME

Mar 16: 5% Shareholder’s
Mar 17: 9% Equity

Mar 18: 12%

Mar 19: 14%
Mar 20: 19%
 PEER AND STRONG COMPETITORS
Peer Competi tors Growth
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
GAIL(India) Adani Total Gas Petronet LNG Indraprastha Gas Gui.St.Petronet Mahanagar Gas Deep Energy

Profit EPS P/E Market Cap Sales Profit

 STRONG COMPETITORS GROWTH
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
GAIL(India) Adani Total Gas Petronet LNG

CMP P/E Div Yld % Net Profit Qtr Market Cap

*CMP=Current Market Price

 TECHNICAL ANALYSIS OF GAIL
INDIA LTD.
PRICE PREVIOUS CLOSE
144.05 141.50

52-WEEK HIGH 52-WEEK LOW

152.8 65

UPPER LIMIT LOWER LIMIT

155.95 127.65

AVERAGE VOLUME AVERAGE DELIVERY

30,568,865 74,16,310
 Price Performance
50.00%

40.00% 38.41%

30.53%
30.00%

20.00% 17.24%
13.42%
10.00%
1.19%
0.00%
1 Week 1 Month 3 Months Year to Date 1 Year 3Years

-10.00%
-15.17%

-20.00%

Price
 USP OF GAIL INDIA LTD.
•Company is completely debt free.

•Stock is providing a good dividend yield of 4.43%.

•Company has been maintaining a healthy dividend payout of 38.23%

•Annual Net Profits improving for last 2 years

• FII / FPI or Institutions increasing their shareholding

• Company has delivered good profit growth of 24.12% CAGR over last
5 years
FUTURE GROWTH AND PROSPECTUS
•It looks at petrochemicals, renewables for growth

It’s eyeing expansion in petrochemicals, specialty chemicals and renewables to supplement growth in its core
business of natural gas marketing and transportation.

•It plans to double revenue in five years

It plans to spend about Rs 40-45,000 crore in laying 7000 km of new gas pipelines, Rs 10,000 crore in
expanding petrochemicals capacity and Rs 40,000 crore in building new city gas infrastructure.

•It looks to be 'future ready', plans to set up charging stations for EVs
It is looking at possibilities of setting up battery charging stations for e-vehicles at CNG dispensing stations in a
bid to diversify its portfolio beyond gas and petrochemicals.
 WHY GAIL INDIA LTD.?
• Gives out healthy dividend
• FPI/FII shows their interest to invest
• Offers long term prospectus and growth opportunities
• It is with 0 promoter pledge
• Near 52-week high(able to new high)
• Annual net profit improving since past 2 years
CONS
• Stock with low P/E <=10 •MFs decreased their shareholding
• Highest recovery from 52-week low last quarter
•Decline in Quarterly Net Profit
• Brokers upgraded recommendation or target (YoY)
•Fall in Quarterly Revenue and Net
price in the past three months Profit (YoY)
THANKYOU