DB:GQI

Stock Analysis Report

Executive Summary

GAIL (India) Limited operates as a natural gas transmission company in India and internationally.

Rewards

PE ratio (8.6x) is below the German market (21.1x)

Earnings are forecast to grow 7.74% per year

Earnings have grown 19.5% per year over the past 5 years

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has GAIL (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GQI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.1%

GQI

0.8%

DE Gas Utilities

2.0%

DE Market


1 Year Return

-13.3%

GQI

8.3%

DE Gas Utilities

15.1%

DE Market

Return vs Industry: GQI underperformed the German Gas Utilities industry which returned 8% over the past year.

Return vs Market: GQI underperformed the German Market which returned 15% over the past year.


Shareholder returns

GQIIndustryMarket
7 Day10.1%0.8%2.0%
30 Day6.7%4.0%1.0%
90 Day4.6%6.1%3.8%
1 Year-12.8%-13.3%13.4%8.3%18.6%15.1%
3 Year-16.3%-20.5%52.3%31.7%16.8%6.6%
5 Year14.2%3.2%58.4%18.4%23.7%6.7%

Price Volatility Vs. Market

How volatile is GAIL (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GAIL (India) undervalued compared to its fair value and its price relative to the market?

8.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GQI (€9.62) is trading above our estimate of fair value (€6.85)

Significantly Below Fair Value: GQI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GQI is good value based on its PE Ratio (8.6x) compared to the Gas Utilities industry average (16.7x).

PE vs Market: GQI is good value based on its PE Ratio (8.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: GQI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: GQI is good value based on its PB Ratio (1.1x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is GAIL (India) forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GQI's forecast earnings growth (7.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: GQI's earnings (7.7% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: GQI's earnings are forecast to grow, but not significantly.

Revenue vs Market: GQI's revenue (6.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: GQI's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GQI's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has GAIL (India) performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GQI has high quality earnings.

Growing Profit Margin: GQI's current net profit margins (8.4%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: GQI's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: GQI's earnings growth over the past year (1.7%) is below its 5-year average (19.5% per year).

Earnings vs Industry: GQI earnings growth over the past year (1.7%) underperformed the Gas Utilities industry 10.6%.


Return on Equity

High ROE: GQI's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GAIL (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: GQI's short term assets (₹112.9B) exceed its short term liabilities (₹103.2B).

Long Term Liabilities: GQI's short term assets (₹112.9B) do not cover its long term liabilities (₹124.3B).


Debt to Equity History and Analysis

Debt Level: GQI's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: GQI's debt to equity ratio has reduced from 51.8% to 3.5% over the past 5 years.

Debt Coverage: GQI's debt is well covered by operating cash flow (522.3%).

Interest Coverage: GQI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GQI has a high level of physical assets or inventory.

Debt Coverage by Assets: GQI's debt is covered by short term assets (assets are 6.7x debt).


Next Steps

Dividend

What is GAIL (India)'s current dividend yield, its reliability and sustainability?

3.40%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.3%markettop25%3.6%industryaverage4.9%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: GQI's dividend (3.4%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: GQI's dividend (3.4%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: GQI's dividend payments have been volatile in the past 10 years.

Growing Dividend: GQI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), GQI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GQI's dividends in 3 years are forecast to be well covered by earnings (36.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Ashutosh Karnatak (59yo)

0.5yrs

Tenure

₹10,586,000

Compensation

Dr. Ashutosh Karnatak serves as Chairman and Managing Director at GAIL (India) Limited since August 1, 2019. Dr. Karnatak serves as Nominee Director of Petronet LNG Limited since 2019. Dr. Karnatak has bee ...


CEO Compensation Analysis

Compensation vs Market: Ashutosh's total compensation ($USD148.03K) is below average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Ashutosh's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ashutosh Karnatak
Chairman0.5yrs₹10.59mno data
Anjani Tiwari
Director of Finance1.2yrs₹2.60m0.000010% 686.4
Anil Jha
Compliance Officer & Company Secretary3.8yrs₹4.87mno data
Gajendra Singh
Director of Marketing & Executive Director0yrs₹9.00mno data
Prafulla Gupta
Director of Human Resources & Whole-Time Director0yrs₹8.80m0.000020% 1.4k
Manoj Jain
Executive Director & Director of Business Development1.7yrs₹6.54m0.000030% 2.1k
A. Sahni
General Manager of Finance & Accounts0yrsno datano data
Vandana Chanana
Executive Director of Corporate Communications & CSR0yrsno datano data
Ram Shanker
Chief Manager of Policy & HR0yrsno datano data
S. Roy
Chief Manager of Security0yrsno datano data

2.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: GQI's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ashutosh Karnatak
Chairman0.5yrs₹10.59mno data
Anjani Tiwari
Director of Finance1.2yrs₹2.60m0.000010% 686.4
Gajendra Singh
Director of Marketing & Executive Director0yrs₹9.00mno data
Prafulla Gupta
Director of Human Resources & Whole-Time Director0yrs₹8.80m0.000020% 1.4k
Manoj Jain
Executive Director & Director of Business Development1.7yrs₹6.54m0.000030% 2.1k
Rajiv Bansal
Part-Time Government Nominee Director0.08yrsno datano data
Ashish Chatterjee
Part-Time Government Nominee Director3.2yrsno datano data
Jayanto Choudhary
Non-Official Part-Time Independent Director2.4yrs₹670.00kno data
Rahul Mukherjee
Non-Official Part-Time Independent Director2.4yrs₹480.00kno data
Banto Kataria
Independent Director1.5yrs₹460.00kno data

1.6yrs

Average Tenure

58yo

Average Age

Experienced Board: GQI's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GAIL (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GAIL (India) Limited
  • Ticker: GQI
  • Exchange: DB
  • Founded: 1984
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: ₹532.197b
  • Listing Market Cap: ₹6.864b
  • Shares outstanding: 4.51b
  • Website: https://www.gailonline.com

Location

  • GAIL (India) Limited
  • GAIL Bhawan
  • 16 Bhikaji Cama Place
  • New Delhi
  • Delhi
  • 110066
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532155BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1997
GAILNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1997
GAIL.FOTCPK (Pink Sheets LLC)SPON GDR EACH REP 6 ORD SHSUSUSDFeb 2000
GAIDLSE (London Stock Exchange)SPON GDR EACH REP 6 ORD SHSGBUSDFeb 2000
GQIDB (Deutsche Boerse AG)SPON GDR EACH REP 6 ORD SHSDEEURFeb 2000
GAIDLBATS-CHIXE (BATS 'Chi-X Europe')SPON GDR EACH REP 6 ORD SHSGBUSDFeb 2000

Biography

GAIL (India) Limited operates as a natural gas transmission company in India and internationally. The company operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. It is involved in the transmission, distribution, and marketing of natural gas to the power, city gas distribution, fertilizer, and other sectors. The company also sources, markets, and trades in liquefied natural gas (LNG); markets liquefied petroleum gas (LPG), propane, pentane, naphtha, MFO, propylene, and hydrogenated C4 mix; and manufactures petrochemicals, such as high density polyethylene and linear low density polyethylene under the brand names of G-Lex and G-Lene. In addition, it operates a network of compressed natural gas stations; and provides piped natural gas to domestic, commercial, and industrial applications, as well as has interests in 11 exploration and production blocks in Assam-Arakan, Cambay, Cauvery, Gujarat Kutch, and Myanmar basins. Further, the company offers long term lease of dark fiber and duct, tower space and collocation facilities, and point-to-point leased line bandwidth services; and generates electric power through 118 MW wind power plant and 5 MW solar power plant. Additionally, it engages in the charter hiring of LNG vessels. The company operates approximately 10977 km of natural gas pipelines; 2038 km LPG pipeline transmission network; and 6 gas processing plants for production of LPG, propane, pentane, naphtha, etc. GAIL (India) Limited was founded in 1984 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:21
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.