Jefferies has reiterated a Buy rating on GAIL (India) Ltd. with a target price of ₹235, implying a potential upside of 17.5%. The brokerage emphasized GAIL’s robust gas demand outlook and strategic pipeline developments as key drivers for growth.
Key highlights from Jefferies’ report:
- Gas demand: India’s gas demand is expected to remain robust, driven by new production and LNG contracts.
- Pipeline expansion: Commissioning of two major pipelines in FY26 is expected to enhance GAIL’s transmission market share.
- Transmission business: A potential tariff hike by March could lead to a re-rating of the business.
- Profitability: Outlook on trading profitability remains constructive for H2FY25.
- EBITDA growth: Projected at 9% CAGR over FY24-27.
Jefferies finds GAIL’s valuation undemanding, supported by steady growth and potential re-rating opportunities.
Disclaimer: These articles are for informational purposes only and do not constitute investment advice. Please consult a financial advisor before making any investment decisions.