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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of GAIL (India) Ltd

About the Company - GAIL (India) Ltd

GAIL (India) Ltd. is a Public Limited Listed company incorporated on 16/08/1984 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L40200DL1984GOI018976 and registration number is 018976. Currently Company is involved in the business activities of Electric power generation, transmission and distribution. Company’s Total Operating Revenue is Rs. 91626.48 Cr. and Equity Capital is Rs. 4440.39 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gas Transmission/Marketing16, Bhikaiji Cama Place, R.K. Puram, New Delhi Delhi 110066shareholders@gail.co.in
https://www.gailonline.com
Management
NamePosition Held
Mr. Sandeep Kumar GuptaChairman & Managing Director
Mr. M V IyerDirector - Business Development
Mr. Rakesh Kumar JainDirector - Finance
Mr. Deepak GuptaDirector - Projects
Mr. Ayush GuptaDirector - Human Resources
Mr. Akhilesh JainIndependent Director
Mr. Sher SinghIndependent Director
Mr. Sanjay KashyapIndependent Director
Mr. Nandhagopal NarayanasamyIndependent Director
Mrs. Kangabam Inaocha DeviIndependent Director
Dr. Ravikant KolheIndependent Director
Mr. Sanjay KumarDirector - Marketing
Mr. Praveen Mal KhanoojaGovernment Nominee Director
Mr. Kushagra MittalGovernment Nominee Director

Basic Stock Data of GAIL (India) Ltd

Last Updated: June 20, 2024, 10:51 pm

Market Cap 1,43,685 Cr.
Current Price 219
High / Low233/103
Stock P/E14.5
Book Value 117
Dividend Yield2.52 %
ROCE14.6 %
ROE14.0 %
Face Value 10.0
PEG Ratio-5.79

GAIL (India) Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales15,65815,73817,57121,75826,14527,32837,89738,68035,88533,20732,78932,98634,698
Expenses13,41912,85514,93218,13621,51823,06433,35036,77735,40332,65130,12829,40530,489
Operating Profit2,2392,8822,6403,6224,6274,2644,5471,9044825562,6613,5804,208
OPM %14%18%15%17%18%16%12%5%1%2%8%11%12%
Other Income705940543757847788419548999871529595915
Interest3758524647575882120107185200176
Depreciation561546590604608619677695699631722837872
Profit before tax2,3463,2192,5403,7284,8204,3754,2301,6756626892,2833,1384,075
Tax %19%21%15%23%21%21%23%22%40%7%21%22%22%
Net Profit1,8972,5352,1572,8733,8003,4743,2511,3053986431,7932,4423,193
EPS in Rs2.783.733.214.335.685.194.952.000.630.962.733.724.86

Last Updated: June 10, 2024, 7:18 pm

GAIL (India) Ltd Quarterly Chart

GAIL (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales44,09350,97461,76560,55752,05348,55254,49676,19072,51857,37292,770145,668133,679
Expenses37,05443,54753,77754,92647,51742,53146,69566,25263,49550,12777,608138,166122,674
Operating Profit7,0407,4277,9885,6314,5366,0217,8029,9389,0227,24515,1617,50211,005
OPM %16%15%13%9%9%12%14%13%12%13%16%5%8%
Other Income7228871,2479457311,2129481,7193,7962,8332,9252,8222,910
Interest366437669652822509295159309179202367668
Depreciation1,0411,3191,6441,4331,4961,5411,5271,6672,0802,1742,4202,7023,062
Profit before tax6,3556,5586,9224,4922,9495,1836,9289,83110,4297,72515,4647,25610,185
Tax %31%34%32%32%37%35%31%33%9%20%20%23%
Net Profit4,4444,3674,7863,1601,8743,3744,8056,5539,5156,14312,3045,5968,071
EPS in Rs6.576.467.074.672.764.987.099.6813.939.2118.408.5412.27
Dividend Payout %25%28%28%24%37%56%43%25%31%36%36%59%

GAIL (India) Ltd Profit & Loss Yearly Chart

GAIL (India) Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:12%
3 Years:32%
TTM:-9%
Compounded Profit Growth
10 Years:8%
5 Years:8%
3 Years:17%
TTM:77%
Stock Price CAGR
10 Years:10%
5 Years:17%
3 Years:28%
1 Year:106%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:14%
Last Year:14%

Last Updated: June 15, 2024, 4:43 pm

GAIL (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1,2681,2681,2681,2681,2681,6912,2552,2554,5104,4404,4406,5756,575
Reserves23,64627,52631,18832,75435,13537,61439,42443,74944,75848,74259,67458,35266,284
Borrowings11,50616,47218,53718,2919,0526,5533,8762,2246,9127,8739,21617,81617,951
Other Liabilities11,47914,54215,87217,35513,60812,43315,79820,19918,75419,97523,25425,06225,392
Total Liabilities47,89959,80966,86569,66959,06358,29161,35368,42674,93481,03096,584107,805116,202
Fixed Assets19,86324,30325,99532,14329,94628,30228,86031,47537,12140,18843,71848,40752,278
CWIP14,70518,37618,49013,8063,6884,1265,9389,73811,66613,40015,49016,64621,124
Investments1,1831,2541,2821,2729,84410,12510,45210,7229,89313,05816,40817,24818,827
Other Assets12,14815,87621,09922,44815,58415,73716,10216,49316,25314,38520,96825,50423,973
Total Assets47,89959,80966,86569,66959,06358,29161,35368,42674,93481,03096,584107,805116,202

GAIL (India) Ltd Reserves and Borrowings Chart

GAIL (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5,1116,6034,6154,2143,9606,0248,7697,9848,3458,9939,4203,205
Cash from Investing Activity -9,443-8,626-4,466-2,809-904-334-2,660-5,701-8,299-4,640-5,490-7,453
Cash from Financing Activity 3,1943,642-3-3,058-3,028-5,275-5,252-3,364281-3,471-3,9172,972
Net Cash Flow-1,1381,618146-1,65329415858-1,08132888213-1,276

GAIL (India) Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days202019192123212422292726
Inventory Days182018141717162125191720
Days Payable333326252735242537282022
Cash Conversion Cycle58128116132010202324
Working Capital Days-19-4-5-11-4-1703-1051410
ROCE %17%15%10%8%12%16%22%20%13%23%10%

GAIL (India) Ltd Financial Efficiency Indicators Chart

GAIL (India) Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters52.12%51.82%51.83%51.85%51.80%51.80%51.89%51.90%51.91%51.91%51.91%51.91%
FIIs15.62%15.63%16.96%18.36%19.69%19.62%19.92%19.79%18.04%16.40%16.09%14.76%
DIIs19.89%19.32%19.38%17.72%15.26%15.90%15.30%13.93%15.97%17.93%18.06%19.14%
Government8.32%8.47%7.95%7.94%7.93%7.93%8.04%7.91%7.91%7.93%7.93%7.91%
Public4.05%4.76%3.88%4.14%5.32%4.75%4.86%6.47%6.18%5.83%6.01%6.30%
No. of Shareholders4,83,3445,23,2175,53,3955,81,1817,12,4517,26,7127,75,6019,64,1229,52,7179,25,2229,07,3399,45,498

GAIL (India) Ltd Shareholding Pattern Chart

No. of GAIL (India) Ltd Shareholders

GAIL (India) Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan59,393,0881.11709.7511,508,3922024-06-20416.09%
SBI Balanced Advantage Fund53,293,3682.62636.8611,508,3922024-06-20363.08%
SBI Contra Fund37,211,2952.67444.6811,508,3922024-06-20223.34%
SBI Long Term Equity Fund32,193,5552.44384.7111,508,3922024-06-20179.74%
Franklin India Flexi Cap Fund18,500,0001.85221.0811,508,3922024-06-2060.75%
Kotak Equity Arbitrage Fund - Regular Plan17,083,0500.7204.1411,508,3922024-06-2048.44%
DSP Tax Saver Fund16,694,1181.71199.4911,508,3922024-06-2045.06%
HDFC Flexi Cap Fund - Regular Plan14,500,0000.44173.2811,508,3922024-06-2026%
SBI Arbitrage Opportunities Fund12,777,9750.68152.711,508,3922024-06-2011.03%
DSP Equity Opportunities Fund11,508,3921.55137.5311,508,3922024-06-200%

GAIL (India) Ltd ROCE Trend

GAIL (India) Ltd EPS Trend

GAIL (India) Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)15.068.5227.6013.6120.89
Diluted EPS (Rs.)15.068.5227.6013.6120.89
Cash EPS (Rs.)18.0910.3229.1914.8720.73
Book Value[Excl.RevalReserv]/Share (Rs.)117.4199.02144.82119.99109.43
Book Value[Incl.RevalReserv]/Share (Rs.)117.4199.02144.82119.99109.43
Revenue From Operations / Share (Rs.)203.04221.54208.92129.20160.79
PBDIT / Share (Rs.)23.2713.4136.7618.8423.44
PBIT / Share (Rs.)17.699.3031.3113.9418.83
PBT / Share (Rs.)16.608.7430.8613.5418.14
Net Profit / Share (Rs.)12.506.2223.749.9716.11
NP After MI And SOA / Share (Rs.)15.068.5427.6013.8220.89
PBDIT Margin (%)11.466.0517.5914.5714.57
PBIT Margin (%)8.714.1914.9810.7811.70
PBT Margin (%)8.173.9414.7610.4711.28
Net Profit Margin (%)6.152.8011.367.7110.02
NP After MI And SOA Margin (%)7.413.8513.2110.6912.99
Return on Networth / Equity (%)12.858.6419.1111.5319.12
Return on Capital Employeed (%)11.287.1017.068.9913.59
Return On Assets (%)7.935.2112.697.5312.57
Long Term Debt / Equity (X)0.160.130.080.090.07
Total Debt / Equity (X)0.240.250.120.120.12
Asset Turnover Ratio (%)1.151.501.090.761.05
Current Ratio (X)0.930.941.080.860.96
Quick Ratio (X)0.660.670.840.620.70
Inventory Turnover Ratio (X)1.231.553.371.351.62
Dividend Payout Ratio (NP) (%)0.0054.6532.6136.4834.87
Dividend Payout Ratio (CP) (%)0.0036.9027.2326.9328.56
Earning Retention Ratio (%)0.0045.3567.3963.5265.13
Cash Earning Retention Ratio (%)0.0063.1072.7773.0771.44
Interest Coverage Ratio (X)21.2824.0580.6246.6634.22
Interest Coverage Ratio (Post Tax) (X)12.4312.1553.0625.7024.53
Enterprise Value (Cr.)136202.4184554.4174354.3465022.6439654.49
EV / Net Operating Revenue (X)1.020.580.801.130.54
EV / EBITDA (X)8.909.594.557.773.75
MarketCap / Net Operating Revenue (X)0.890.470.741.050.47
Retention Ratios (%)0.0045.3467.3863.5165.12
Price / BV (X)1.551.071.081.130.69
Price / Net Operating Revenue (X)0.890.470.741.050.47
EarningsYield0.080.080.170.100.27

GAIL (India) Ltd Profitability Ratios (%)

GAIL (India) Ltd Liquidity Ratios

GAIL (India) Ltd Liquidity Ratios (%)

GAIL (India) Ltd Interest Coverage Ratios (%)

GAIL (India) Ltd Valuation Ratios

Fair Value

Fair Value: 243.50

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.19% compared to the current price 219

Intrinsic Value: 237.39

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 8.40% compared to the current price ₹219

Last 5 Year EPS CAGR: -2.51%

*Investments are subject to market risks

Strength and Weakness of GAIL (India) Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -3.17, which is a positive sign.
  2. The company has higher reserves (42,218.92 cr) compared to borrowings (11,252.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (72.62 cr) and profit (7.15 cr) over the years.
  1. The stock has a low average ROCE of 13.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 13.33, which may not be favorable.

FAQ

What is the latest fair value of GAIL (India) Ltd?

The latest fair value of GAIL (India) Ltd is ₹243.50.

What is the Market Cap of GAIL (India) Ltd?

The Market Cap of GAIL (India) Ltd is 1,43,685 Cr..

What is the current Stock Price of GAIL (India) Ltd as on 21 June 2024?

The current stock price of GAIL (India) Ltd as on 21 June 2024 is ₹219.

What is the High / Low of GAIL (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of GAIL (India) Ltd stocks is 233/103.

What is the Stock P/E of GAIL (India) Ltd?

The Stock P/E of GAIL (India) Ltd is 14.5.

What is the Book Value of GAIL (India) Ltd?

The Book Value of GAIL (India) Ltd is 117.

What is the Dividend Yield of GAIL (India) Ltd?

The Dividend Yield of GAIL (India) Ltd is 2.52 %.

What is the ROCE of GAIL (India) Ltd?

The ROCE of GAIL (India) Ltd is 14.6 %.

What is the ROE of GAIL (India) Ltd?

The ROE of GAIL (India) Ltd is 14.0 %.

What is the Face Value of GAIL (India) Ltd?

The Face Value of GAIL (India) Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in GAIL (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE