NSEI:GAIL

Stock Analysis Report

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Executive Summary

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. More Details


Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


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: GAIL is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GAIL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

9.7%

GAIL

2.2%

IN Gas Utilities

0.3%

IN Market


1 Year Return

-18.3%

GAIL

15.2%

IN Gas Utilities

7.0%

IN Market

Return vs Industry: GAIL underperformed the Indian Gas Utilities industry which returned 15.6% over the past year.

Return vs Market: GAIL underperformed the Indian Market which returned 8.9% over the past year.


Shareholder returns

GAILIndustryMarket
7 Day9.7%2.2%0.3%
30 Day22.0%24.4%9.0%
90 Day3.7%14.4%8.8%
1 Year-13.8%-18.3%18.4%15.2%8.9%7.0%
3 Year-35.3%-41.5%-3.3%-9.9%5.1%0.009%
5 Year17.4%2.1%33.6%18.5%51.8%40.4%

Long-Term 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

Valuation

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

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAIL (₹102.3) is trading below our estimate of fair value (₹189.4)

Significantly Below Fair Value: GAIL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GAIL is good value based on its PE Ratio (5.4x) compared to the IN Gas Utilities industry average (20.3x).

PE vs Market: GAIL is good value based on its PE Ratio (5.4x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: GAIL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GAIL is good value based on its PB Ratio (0.9x) compared to the IN Gas Utilities industry average (4.5x).


Next Steps

Future Growth

How is GAIL (India) forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAIL's forecast earnings growth (7.9% per year) is above the savings rate (7.2%).

Earnings vs Market: GAIL's earnings (7.9% per year) are forecast to grow slower than the Indian market (24.2% per year).

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

Revenue vs Market: GAIL's revenue (16.1% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: GAIL's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GAIL's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

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

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAIL has high quality earnings.

Growing Profit Margin: GAIL's current net profit margins (13.8%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: GAIL's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: GAIL's earnings growth over the past year (42.3%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: GAIL earnings growth over the past year (42.3%) exceeded the Gas Utilities industry -3.5%.


Return on Equity

High ROE: GAIL's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is GAIL (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: GAIL's short term assets (₹116.3B) exceed its short term liabilities (₹116.0B).

Long Term Liabilities: GAIL's short term assets (₹116.3B) do not cover its long term liabilities (₹131.7B).


Debt to Equity History and Analysis

Debt Level: GAIL's debt to equity ratio (11.6%) is considered satisfactory.

Reducing Debt: GAIL's debt to equity ratio has reduced from 37.7% to 11.6% over the past 5 years.

Debt Coverage: GAIL's debt is well covered by operating cash flow (135.3%).

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


Balance Sheet


Next Steps

Dividend

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

6.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAIL's dividend (6.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.53%).

High Dividend: GAIL's dividend (6.26%) is in the top 25% of dividend payers in the Indian market (2.15%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAIL's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Manoj Jain (58 yo)

0.75

Tenure

₹8,745,000

Compensation

Mr. Manoj Jain serves as Additional Director of Petronet LNG Limited since May 6, 2020. He has been Chairman of the Board at Mahanagar Gas Limited since May 06, 2020. Mr. Jain has been the Chairman & Manag...


CEO Compensation Analysis

Compensation vs Market: Manoj's total compensation ($USD118.12K) is below average for companies of similar size in the Indian market ($USD1.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Manoj Jain
MD & Chairman0.75yr₹8.75m0.000030%
₹ 138.4k
Anjani Tiwari
Director of Finance1.92yrs₹10.70m0.000010%
₹ 46.1k
Anil Jha
Compliance Officer & Company Secretary4.5yrs₹5.37mno data
Prafulla Gupta
Director of Human Resources & Whole-Time Directorno data₹9.50m0.000020%
₹ 92.3k
A. Sahni
General Manager of Finance & Accountsno datano datano data
Vandana Chanana
Executive Director of Corporate Communications & CSRno datano datano data
Elavathur Ranganathan
Director of Marketing & Additional Director0.33yrno data0.000020%
₹ 92.3k
Ram Shanker
Chief Manager of Policy & HRno datano datano data
S. Roy
Chief Manager of Securityno datano datano data
Bhavanasi Rao
Chief Manager of LPGno datano datano data
Jyoti Kumar
Chief Manager of Corporate Communicationsno datano datano data
B. Solanki
Chief Public Information Officerno datano datano data

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: GAIL's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Manoj Jain
MD & Chairman0.75yr₹8.75m0.000030%
₹ 138.4k
Anjani Tiwari
Director of Finance1.92yrs₹10.70m0.000010%
₹ 46.1k
Prafulla Gupta
Director of Human Resources & Whole-Time Directorno data₹9.50m0.000020%
₹ 92.3k
Elavathur Ranganathan
Director of Marketing & Additional Director0.33yrno data0.000020%
₹ 92.3k
Ashish Chatterjee
Part-Time Government Nominee Director3.92yrsno datano data
Jayanto Choudhary
Non-Official Part-Time Independent Director3.17yrs₹780.00kno data
Rahul Mukherjee
Non-Official Part-Time Independent Director3.17yrs₹620.00kno data
Banto Kataria
Part-time Non-official Independent Director2.25yrs₹940.00kno data
Esha Srivastava
Government Nominee Director0.67yrno datano data

2.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: GAIL's board of directors are not considered experienced ( 2.1 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: GAIL
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: ₹461.388b
  • 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)SPONSORED GDRUSUSDFeb 2000
GAIDLSE (London Stock Exchange)SPONSORED GDRGBUSDFeb 2000
GQIDB (Deutsche Boerse AG)SPONSORED GDRDEEURFeb 2000
GAIDLBATS-CHIXE (BATS 'Chi-X Europe')SPONSORED GDRGBUSDFeb 2000

Biography

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. The company operates through Transmission Services, Natural Gas Marketing, Petrochemicals, L...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 12:11
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.