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Target: ₹156
CMP: ₹133.55
GAIL India’s revenue grew 73.4 per cent year-on-year to ₹26,968 crore (+4.6 per cent quarter-on-quarter) in Q4-FY22 aided by higher revenue across natural gas marketing, LPG transmission and trading segment due to increased prices owing to geopolitical tensions which was offset by weak performance in the petrochemicals business.
Estimated capex is about ₹7,500 crore for FY23; the company shall invest in various projects worth about ₹3 lakh crore over the next three years. The management has retired high-cost loan by exercising call option on Bond Series 2015, which was issued at 8.30 per cent per annum and an amount of ₹500 crore has been paid. GAIL Board approved buyback of about 5.70 crore shares at ₹190/share aggregating to about ₹1,083 crore in FY 2021-22.
GAIL shall invest ₹26,000 crore in the renewable’s portfolio by 2030, out of which ₹6,000 crore will be invested in three years, and about ₹20,000 crore by 2030. It is looking forward to 1 GW of renewable capacity over the next three years. This shall consolidate to 10 per cent of GAIL’s portfolio to be hydrogen plus renewable by 2030, which shall expand its portfolio and reap benefits.
The company will benefit from the capex prospects, enhanced utilisation of Urja Ganga pipeline and expansion of petrochemical pipelines, which will aid increased demand and improve profitability.
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