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

5.1%

NSEI:GAIL

0.3%

IN Gas Utilities

-1.0%

IN Market


1 Year Return

-29.8%

NSEI:GAIL

-11.5%

IN Gas Utilities

-11.5%

IN Market

GAIL underperformed the Gas Utilities industry which returned -11.5% over the past year.

GAIL underperformed the Market in India which returned -11.5% over the past year.


Share holder returns

GAILIndustryMarket
7 Day5.1%0.3%-1.0%
30 Day6.0%-0.4%-0.9%
90 Day-13.3%-7.4%-7.0%
1 Year-27.9%-29.8%-9.6%-11.5%-9.8%-11.5%
3 Year33.1%23.9%48.2%40.5%16.9%11.0%
5 Year20.3%8.4%21.5%8.1%33.6%21.0%

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?

9.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

GAIL (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

GAIL (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

GAIL (India) is good value based on earnings compared to the IN Gas Utilities industry average.

GAIL (India) is good value based on earnings compared to the India market.


Price Based on Expected Growth

GAIL (India) is poor value based on expected growth next year.


Price Based on Value of Assets

GAIL (India) is good value based on assets compared to the IN Gas Utilities industry average.


Next Steps

Future Growth

How is GAIL (India) expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GAIL (India)'s revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

GAIL (India)'s earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

GAIL (India)'s revenue growth is positive but not above the India market average.

GAIL (India)'s earnings growth is positive but not above the India market average.

GAIL (India)'s earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

GAIL (India) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

GAIL (India) has delivered over 20% year on year earnings growth in the past 5 years.

GAIL (India)'s 1-year earnings growth exceeds its 5-year average (26.3% vs 23.5%)

GAIL (India)'s earnings growth has not exceeded the IN Gas Utilities industry average in the past year (26.3% vs 32.3%).


Return on Equity

GAIL (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

GAIL (India) used its assets less efficiently than the IN Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

GAIL (India) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GAIL (India)'s financial position?


Financial Position Analysis

GAIL (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

GAIL (India)'s long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GAIL (India)'s level of debt (4.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (53.4% vs 4.8% today).

Debt is well covered by operating cash flow (359.2%, greater than 20% of total debt).

GAIL (India) earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5x debt.


Next Steps

Dividend

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

3.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GAIL (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

GAIL (India)'s dividend is above the markets top 25% of dividend payers in India (2.35%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Ashutosh Karnatak (59yo)

0.08yrs

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

Ashutosh's remuneration is lower than average for companies of similar size in India.

Ashutosh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

58.5yo

Average Age

The average tenure for the GAIL (India) management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

59yo

Average Age

The average tenure for the GAIL (India) board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 0.08yrs
    • Compensation: ₹10.59m
  • Vandana Chanana

    Executive Director of Corporate Communications & CSR

    • Tenure: 0yrs
  • Anil Jha

    Compliance Officer & Company Secretary

    • Tenure: 3.3yrs
    • 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: 0.08yrs
    • Compensation: ₹10.59m
  • Anupam Kulshreshtha (67yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹1.12m
  • Sanjay Tandon (56yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹1.08m
  • Sanjay Srivastava (64yo)

    Part-Time Non-Official Independent Director

    • Tenure: 3.8yrs
    • 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: 2yrs
    • Compensation: ₹670.00k
  • Rahul Mukherjee (62yo)

    Non-Official Part-Time Independent Director

    • Tenure: 2yrs
    • 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: ₹594.888b
  • 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)GDR EACH REP 6 ORD INR10 REG'S'USUSDFeb 2000
GAIDLSE (London Stock Exchange)GDR EACH REP 6 ORD INR10 REG'S'GBUSDFeb 2000
GQIDB (Deutsche Boerse AG)GDR EACH REP 6 ORD INR10 REG'S'DEEURFeb 2000
GAIDLBATS-CHIXE (BATS 'Chi-X Europe')GDR EACH REP 6 ORD INR10 REG'S'GBUSDFeb 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 Analysis2019/09/18 12:41
End of Day Share Price2019/09/18 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.