NSEI:GAIL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established 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


Market Performance


7 Day Return

-3.3%

GAIL

-0.04%

IN Gas Utilities

0.5%

IN Market


1 Year Return

-28.3%

GAIL

-7.2%

IN Gas Utilities

0.9%

IN Market

Return vs Industry: GAIL underperformed the Indian Gas Utilities industry which returned -7.2% over the past year.

Return vs Market: GAIL underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

GAILIndustryMarket
7 Day-3.3%-0.04%0.5%
30 Day-2.6%0.6%1.0%
90 Day-14.6%-4.6%-3.2%
1 Year-26.4%-28.3%-5.3%-7.2%2.8%0.9%
3 Year12.3%4.6%34.7%27.5%20.3%14.3%
5 Year8.2%-2.5%24.6%11.0%43.1%29.8%

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 based on future cash flows and its price relative to the stock market?

8.59x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: GAIL (₹125.85) is trading above our estimate of fair value (₹92.07)

Significantly Undervalued: GAIL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: GAIL is good value based on its PE Ratio (8.6x) compared to the Gas Utilities industry average (18.8x).

PE vs Market: GAIL is good value based on its PE Ratio (8.6x) compared to the Indian market (13.1x).


Price Based on Expected Growth

Low PEG Ratio: GAIL is poor value based on its PEG Ratio (2.7x)


Price Based on Value of Assets

PB vs Industry: GAIL is good value based on its PB Ratio (1.2x) compared to the IN Gas Utilities industry average (4.6x).


Next Steps

Future Growth

How is GAIL (India) expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GAIL's forecast earnings growth (3.1% per year) is below the savings rate (7.6%).

Earnings vs Market: GAIL's earnings (3.1% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

Revenue vs Market: GAIL's revenue (4.8% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: GAIL's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GAIL's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

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

23.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GAIL's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: GAIL's earnings growth over the past year (26.3%) exceeds its 5-year average (23.5% per year).

Earnings vs Industry: GAIL earnings growth over the past year (26.3%) underperformed the Gas Utilities industry 32.3%.


Return on Equity

High ROE: GAIL's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: GAIL's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: GAIL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is GAIL (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: GAIL's short term assets (₹110.5B) exceeds its short term liabilities (₹106.6B)

Long Term Liabilities: GAIL's short term assets (110.5B) do not cover its long term liabilities (117.0B)


Debt to Equity History and Analysis

Debt Level: GAIL's debt to equity ratio (4.8%) is considered satisfactory

Reducing Debt: GAIL's debt to equity ratio has reduced from 53.4% to 4.8% over the past 5 years.

Debt Coverage: GAIL's debt is well covered by operating cash flow (359.2%).

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


Balance Sheet

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

Debt Coverage by Assets: GAIL's debt is covered by short term assets (assets are 4.970610x debt).


Next Steps

Dividend

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

4.09%

Expected Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.8%forecastin3Years4.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GAIL's dividend (3.19%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: GAIL's dividend (3.19%) is in the top 25% of dividend payers in the Indian market (2.46%)

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: With its reasonably low payout ratio (27.4%), GAIL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GAIL's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

What is the CEO of GAIL (India)'s salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Ashutosh Karnatak (59yo)

0.2yrs

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: Insufficient data to establish whether Ashutosh's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

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 Age and Tenure

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: GAIL's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Prafulla Gupta (58yo)

    Director of Human Resources & Whole-Time Director

    • Tenure: 0yrs
    • Compensation: ₹8.80m
  • Ram Shanker

    Chief Manager of Policy & HR

    • Tenure: 0yrs
  • S. Roy (70yo)

    Chief Manager of Security

    • Tenure: 0yrs
  • Ashutosh Karnatak (59yo)

    Chairman

    • Tenure: 0.2yrs
    • Compensation: ₹10.59m
  • Vandana Chanana

    Executive Director of Corporate Communications & CSR

    • Tenure: 0yrs
  • Anil Jha

    Compliance Officer & Company Secretary

    • Tenure: 3.4yrs
    • Compensation: ₹4.87m
  • A. Sahni

    General Manager of Finance & Accounts

    • Tenure: 0yrs
  • Anjani Tiwari (58yo)

    Director of Finance

    • Tenure: 0.8yrs
    • Compensation: ₹2.60m
  • Gajendra Singh (59yo)

    Director of Marketing & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹9.00m
  • Manoj Jain (56yo)

    Executive Director & Director of Business Development

    • Tenure: 1.3yrs
    • Compensation: ₹6.54m

Board Members

  • Prafulla Gupta (58yo)

    Director of Human Resources & Whole-Time Director

    • Tenure: 0yrs
    • Compensation: ₹8.80m
  • Ashutosh Karnatak (59yo)

    Chairman

    • Tenure: 0.2yrs
    • Compensation: ₹10.59m
  • Anupam Kulshreshtha (67yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹1.12m
  • Sanjay Tandon (56yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹1.08m
  • Sanjay Srivastava (64yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹1.24m
  • Anjani Tiwari (58yo)

    Director of Finance

    • Tenure: 0.8yrs
    • Compensation: ₹2.60m
  • Gajendra Singh (59yo)

    Director of Marketing & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹9.00m
  • Jayanto Choudhary (63yo)

    Non-Official Part-Time Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹670.00k
  • Rahul Mukherjee (62yo)

    Non-Official Part-Time Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹480.00k
  • Manoj Jain (56yo)

    Executive Director & Director of Business Development

    • Tenure: 1.3yrs
    • Compensation: ₹6.54m

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: ₹563.542b
  • 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 Li ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:43
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.

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