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GAIL (India)

NSEI:GAIL
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GAIL
NSEI
₹585B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

GAIL (India) Limited operates as a natural gas transmission company in India and internationally. The last earnings update was 8 days ago. More info.


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  • GAIL (India) has significant price volatility in the past 3 months.
GAIL Share Price and Events
7 Day Returns
4.7%
NSEI:GAIL
2.6%
IN Gas Utilities
-0.7%
IN Market
1 Year Returns
-33.1%
NSEI:GAIL
-16.6%
IN Gas Utilities
-12.1%
IN Market
GAIL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GAIL (India) (GAIL) 4.7% -8.7% -22.1% -33.1% 26.7% 6.4%
IN Gas Utilities 2.6% -4.4% -5.3% -16.6% 43.7% 20.3%
IN Market -0.7% -5.7% -4.3% -12.1% 13% 25.2%
1 Year Return vs Industry and Market
  • GAIL underperformed the Gas Utilities industry which returned -16.6% over the past year.
  • GAIL underperformed the Market in India which returned -12.1% over the past year.
Price Volatility
GAIL
Industry
5yr Volatility vs Market

GAIL Value

 Is GAIL (India) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GAIL (India) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for GAIL (India).

NSEI:GAIL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GAIL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.38
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.382 (1 + (1- 35%) (3.8%))
0.592
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:GAIL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for GAIL (India) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:GAIL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2020 38,814.02 Analyst x5 33,919.44
2021 35,421.10 Analyst x8 27,050.93
2022 38,402.09 Analyst x3 25,629.21
2023 41,444.29 Est @ 7.92% 24,171.59
2024 44,681.25 Est @ 7.81% 22,773.29
2025 48,136.13 Est @ 7.73% 21,440.34
2026 51,831.82 Est @ 7.68% 20,175.17
2027 55,791.41 Est @ 7.64% 18,977.90
2028 60,038.54 Est @ 7.61% 17,847.24
2029 64,597.73 Est @ 7.59% 16,781.02
Present value of next 10 years cash flows ₹228,766.13
NSEI:GAIL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹64,597.73 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹1,009,808.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,009,808.97 ÷ (1 + 14.43%)10
₹262,325.34
NSEI:GAIL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹228,766.13 + ₹262,325.34
₹491,091.47
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹491,091.47 / 4,510.14
₹108.89
NSEI:GAIL Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹108.89
Current discount Discount to share price of ₹129.65
= -1 x (₹129.65 - ₹108.89) / ₹108.89
-19.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of GAIL (India) is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GAIL (India)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GAIL (India)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GAIL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in INR ₹14.65
NSEI:GAIL Share Price ** NSEI (2019-08-16) in INR ₹129.65
India Gas Utilities Industry PE Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 18.71x
India Market PE Ratio Median Figure of 2,785 Publicly-Listed Companies 13.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GAIL (India).

NSEI:GAIL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:GAIL Share Price ÷ EPS (both in INR)

= 129.65 ÷ 14.65

8.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does GAIL (India)'s expected growth come at a high price?
Raw Data
NSEI:GAIL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
4.6%per year
India Gas Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Gas Utilities Companies 2.28x
India Market PEG Ratio Median Figure of 544 Publicly-Listed Companies 1.09x

*Line of best fit is calculated by linear regression .

NSEI:GAIL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.85x ÷ 4.6%

1.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GAIL (India) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on GAIL (India)'s assets?
Raw Data
NSEI:GAIL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in INR ₹102.00
NSEI:GAIL Share Price * NSEI (2019-08-16) in INR ₹129.65
India Gas Utilities Industry PB Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 4.53x
India Market PB Ratio Median Figure of 3,663 Publicly-Listed Companies 0.87x
NSEI:GAIL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:GAIL Share Price ÷ Book Value per Share (both in INR)

= 129.65 ÷ 102.00

1.27x

* Primary Listing of GAIL (India).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GAIL (India) is good value based on assets compared to the IN Gas Utilities industry average.
X
Value checks
We assess GAIL (India)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. GAIL (India) has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GAIL Future Performance

 How is GAIL (India) expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GAIL (India) expected to grow at an attractive rate?
  • GAIL (India)'s earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • GAIL (India)'s earnings growth is positive but not above the India market average.
  • GAIL (India)'s revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:GAIL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GAIL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 4.6%
NSEI:GAIL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 5.9%
India Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 7.7%
India Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
India Market Earnings Growth Rate Market Cap Weighted Average 17.9%
India Market Revenue Growth Rate Market Cap Weighted Average 11.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GAIL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GAIL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 808,034 79,630 64,507 4
2021-03-31 825,386 85,444 65,826 22
2020-03-31 746,715 78,251 59,836 18
NSEI:GAIL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-06-30 770,933 66,061
2019-03-31 761,899 79,842 65,457
2018-03-31 544,964 87,687 47,944
2017-03-31 485,517 60,243 33,689

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GAIL (India)'s earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • GAIL (India)'s revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GAIL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from GAIL (India) Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GAIL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 13.94 15.80 11.80 5.00
2021-03-31 14.68 19.75 11.40 22.00
2020-03-31 13.19 15.08 10.40 19.00
NSEI:GAIL Past Financials Data
Date (Data in INR Millions) EPS *
2019-06-30 14.65
2019-03-31 14.51
2018-03-31 10.63
2017-03-31 7.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • GAIL (India) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess GAIL (India)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GAIL (India) has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GAIL Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GAIL (India)'s growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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%).
Earnings and Revenue History
GAIL (India)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GAIL (India) Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GAIL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 770,933.30 66,060.90 19,972.80
2019-03-31 761,898.90 65,457.40 19,587.70
2018-03-31 544,963.50 47,943.60 14,290.90
2017-03-31 485,517.20 33,689.20 14,651.70
2016-03-31 520,525.10 18,692.20 11,468.90
2015-03-31 607,039.60 31,600.50 10,987.90
2014-03-31 619,183.10 47,862.20 21,917.60 284.50
2013-03-31 510,944.30 43,736.00 17,067.00 129.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • GAIL (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • GAIL (India) used its assets less efficiently than the IN Gas Utilities industry average last year based on Return on Assets.
  • GAIL (India) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess GAIL (India)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GAIL (India) has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GAIL Health

 How is GAIL (India)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up GAIL (India)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of GAIL (India)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GAIL (India) Company Filings, last reported 1 month ago.

NSEI:GAIL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 460,500.50 22,237.30 6,294.00
2019-03-31 460,500.50 22,227.90 6,294.00
2018-03-31 417,174.90 32,188.90 25,284.40
2017-03-31 393,378.90 60,105.00 7,759.60
2016-03-31 364,306.50 90,516.40 18,457.30
2015-03-31 357,809.70 182,913.50 16,975.30
2014-03-31 342,157.30 185,369.40 33,479.10
2013-03-31 302,512.80 164,723.20 33,182.10
  • 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.
X
Financial health checks
We assess GAIL (India)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GAIL (India) has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GAIL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.09%
Current annual income from GAIL (India) dividends. Estimated to be 4.12% next year.
If you bought ₹2,000 of GAIL (India) shares you are expected to receive ₹62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • GAIL (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).
  • GAIL (India)'s dividend is above the markets top 25% of dividend payers in India (2.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GAIL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
India Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1441 Stocks 1.5%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GAIL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 5.48 5.00
2021-03-31 5.32 19.00
2020-03-31 5.31 18.00
NSEI:GAIL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-23 4.010 3.125
2019-05-27 4.010 2.592
2019-02-05 3.845 2.247
2018-07-18 3.589 2.017
2018-01-12 3.881 2.287
2017-05-22 3.403 2.181
2017-01-25 3.234 2.233
2016-08-12 1.547 1.325
2016-02-09 1.547 1.513
2015-08-03 1.688 1.845
2015-02-26 2.503 2.325
2014-07-31 2.925 2.343
2014-02-06 2.841 2.554
2013-10-08 2.700 2.819
2013-02-14 2.728 3.035
2012-09-21 2.447 2.428
2012-01-23 2.391 2.397
2011-09-22 2.109 1.885
2010-07-07 2.109 1.624
2010-05-18 2.109 1.632
2009-12-21 1.125 0.965
2009-06-15 1.969 2.008
2009-03-31 1.969 2.571
2009-01-28 1.875 3.172

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of GAIL (India)'s earnings are paid to the shareholders as a dividend.
  • 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 (2.7x coverage).
X
Income/ dividend checks
We assess GAIL (India)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GAIL (India) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GAIL (India) has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GAIL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ashutosh Karnatak
COMPENSATION ₹10,586,000
AGE 59
TENURE AS CEO 0 years
CEO Bio

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 been Director of Projects and Whole Time Director of GAIL (India) Limited since March 1, 2014 and served as its Business Responsibility Head. Dr. Karnatak serves as the Non-Executive Non-Independent Chairman of Mahanagar Gas Limited since August 1, 2019 and previously served as the Non-Executive Chairman from May 27, 2015 to May 28, 2017. Dr. Karnatak served as an Executive Director (Projects) in GAIL. During his rich career span of over 30 years, he has managed diverse infrastructure projects such as construction of cross country trunk pipelines like Dabhol – Bangalore, Dahej-Vijaipur, Dahej-Uran, Dabhol-Panvel, CGD networks in Mumbai, R-LNG terminal at Dabhol and building projects like, LPG gas processing plant at Gandhar, besides spearheading wind and solar energy projects. He serves as Director of GAIL Gas Limited. Dr. Karnatak is an M. Tech from IIT Delhi, an MBA in Finance and a Ph.D. from University of Petroleum & Energy Studies, Dehradun. He is a B Tech in Electrical Engineering from HBTI, Kanpur.

CEO Compensation
  • Ashutosh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ashutosh's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the GAIL (India) management team in years:

2.3
Average Tenure
58.5
Average Age
  • The tenure for the GAIL (India) management team is about average.
Management Team

Ashutosh Karnatak

TITLE
Chairman
COMPENSATION
₹11M
AGE
59

Anjani Tiwari

TITLE
Director of Finance
COMPENSATION
₹3M
AGE
58
TENURE
0.7 yrs

Anil Jha

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹5M
TENURE
3.3 yrs

Gajendra Singh

TITLE
Director of Marketing & Executive Director
COMPENSATION
₹9M
AGE
59
TENURE
2.3 yrs

Prafulla Gupta

TITLE
Director of Human Resources & Whole-Time Director
COMPENSATION
₹9M
AGE
58
TENURE
2.5 yrs

Manoj Jain

TITLE
Executive Director & Director of Business Development
COMPENSATION
₹7M
AGE
56
TENURE
1.2 yrs

A. Sahni

TITLE
General Manager of Finance & Accounts

Vandana Chanana

TITLE
Executive Director of Corporate Communications & CSR

Ram Shanker

TITLE
Chief Manager of Policy & HR

S. Roy

TITLE
Chief Manager of Security
AGE
70
Board of Directors Tenure

Average tenure and age of the GAIL (India) board of directors in years:

1.9
Average Tenure
59
Average Age
  • The average tenure for the GAIL (India) board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ashutosh Karnatak

TITLE
Chairman
COMPENSATION
₹11M
AGE
59

Anjani Tiwari

TITLE
Director of Finance
COMPENSATION
₹3M
AGE
58
TENURE
0.7 yrs

Gajendra Singh

TITLE
Director of Marketing & Executive Director
COMPENSATION
₹9M
AGE
59

Prafulla Gupta

TITLE
Director of Human Resources & Whole-Time Director
COMPENSATION
₹9M
AGE
58

Manoj Jain

TITLE
Executive Director & Director of Business Development
COMPENSATION
₹7M
AGE
56
TENURE
1.2 yrs

Anupam Kulshreshtha

TITLE
Part-Time Non-Official Independent Director
COMPENSATION
₹1M
AGE
67
TENURE
3.8 yrs

Sanjay Tandon

TITLE
Part-Time Non-Official Independent Director
COMPENSATION
₹1M
AGE
56
TENURE
3.8 yrs

Sanjay Srivastava

TITLE
Part-Time Non-Official Independent Director
COMPENSATION
₹1M
AGE
64
TENURE
3.8 yrs

Jayanto Choudhary

TITLE
Non-Official Part-Time Independent Director
COMPENSATION
₹670K
AGE
63
TENURE
1.9 yrs

Rahul Mukherjee

TITLE
Non-Official Part-Time Independent Director
COMPENSATION
₹480K
AGE
62
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess GAIL (India)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GAIL (India) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GAIL News

Simply Wall St News

Does The Data Make GAIL (India) Limited (NSE:GAIL) An Attractive Investment?

In the case of GAIL, it is a financially-sound company with a strong track record high-quality dividend payments, trading at a great value. … For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on GAIL (India) here. … NSEI:GAIL Historical Dividend Yield, August 10th 2019 Next Steps: For GAIL (India), I've put together three essential factors you should look at: Future Outlook: What are well-informed industry analysts predicting for GAIL’s future growth?

Simply Wall St -

Should You Buy GAIL (India) Limited (NSE:GAIL) For Its Dividend?

While GAIL (India)'s 2.8% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … First, we like GAIL (India)'s low dividend payout ratio, although we're a bit concerned that it paid out a substantially higher percentage of its free cash flow. … Ultimately, GAIL (India) comes up short on our dividend analysis.

Simply Wall St -

What Kind Of Shareholder Appears On The GAIL (India) Limited's (NSE:GAIL) Shareholder Register?

Check out our latest analysis for GAIL (India) NSEI:GAIL Ownership Summary, July 24th 2019 What Does The Institutional Ownership Tell Us About GAIL (India)? … As you can see, institutional investors own 24% of GAIL (India). … Insider Ownership Of GAIL (India) The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

If You Had Bought GAIL (India) (NSE:GAIL) Stock Three Years Ago, You Could Pocket A 36% Gain Today

It hasn't been the best quarter for GAIL (India) Limited (NSE:GAIL) shareholders, since the share price has fallen 16% in that time. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … GAIL (India) was able to grow its EPS at 52% per year over three years, sending the share price higher.

Simply Wall St -

Is GAIL (India) Limited's (NSE:GAIL) CEO Salary Justified?

According to our data, GAIL (India) Limited has a market capitalization of ₹691b, and pays its CEO total annual compensation worth ₹9.2m. … A first glance this seems like a real positive for shareholders, since Bhuwan Tripathi is paid less than the average total compensation paid by other large companies. … GAIL (India) Limited is currently paying its CEO below what is normal for large companies.

Simply Wall St -

Based On Its ROE, Is GAIL (India) Limited (NSE:GAIL) A High Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for GAIL (India): 14% = ₹65b ÷ ₹461b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … GAIL (India)'s Debt And Its 14% ROE GAIL (India) has a debt to equity ratio of just 0.045, which is very low. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand GAIL (India) Limited (NSE:GAIL)

We'll look at GAIL (India) Limited's (NSE:GAIL) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for GAIL (India): P/E of 10.61 = ₹308.1 ÷ ₹29.03 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … NSEI:GAIL Price Estimation Relative to Market, June 15th 2019 Its relatively low P/E ratio indicates that GAIL (India) shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Calculating The Fair Value Of GAIL (India) Limited (NSE:GAIL)

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (₹, Millions) ₹19.65k ₹42.37k ₹34.06k ₹54.37k ₹65.30k ₹75.97k ₹86.38k ₹96.62k ₹106.82k ₹117.14k Growth Rate Estimate Source Analyst x8 Analyst x7 Analyst x9 Analyst x1 Est @ 20.1% Est @ 16.34% Est @ 13.7% Est @ 11.86% Est @ 10.56% Est @ 9.66% Present Value (₹, Millions) Discounted @ 14.43% ₹17.17k ₹32.36k ₹22.73k ₹31.71k ₹33.28k ₹33.84k ₹33.62k ₹32.86k ₹31.75k ₹30.43k Present Value of 10-year Cash Flow (PVCF)= ₹299.76b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 7.6%. … NSEI:GAIL Intrinsic value, June 6th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Here's Why We Think GAIL (India) (NSE:GAIL) Is Well Worth Watching

So if you're like me, you might be more interested in profitable, growing companies, like GAIL (India) (NSE:GAIL). … Check out our latest analysis for GAIL (India) GAIL (India)'s Earnings Per Share Are Growing. … GAIL (India)'s earnings per share have taken off like a rocket aimed right at the moon.

Simply Wall St -

Three Things You Should Check Before Buying GAIL (India) Limited (NSE:GAIL) For Its Dividend

Dividend paying stocks like GAIL (India) Limited (NSE:GAIL) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … While GAIL (India)'s 2.2% dividend yield is not the highest, we think its lengthy payment history is quite interesting.

Simply Wall St -

GAIL Company Info

Description

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.

Details
Name: GAIL (India) Limited
GAIL
Exchange: NSEI
Founded: 1984
₹584,739,892,926
4,510,141,866
Website: http://www.gailonline.com
Address: GAIL (India) Limited
GAIL Bhawan,
16 Bhikaji Cama Place,
New Delhi,
Delhi, 110066,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI GAIL Equity Shares National Stock Exchange of India IN INR 02. Apr 1997
BSE 532155 Equity Shares Mumbai Stock Exchange IN INR 02. Apr 1997
LSE GAID SPONSORED GDR London Stock Exchange GB USD 09. Feb 2000
OTCPK GAIL.F SPONSORED GDR Pink Sheets LLC US USD 09. Feb 2000
DB GQI SPONSORED GDR Deutsche Boerse AG DE EUR 09. Feb 2000
BATS-CHIXE GAIDL SPONSORED GDR BATS 'Chi-X Europe' GB USD 09. Feb 2000
Number of employees
Current staff
Staff numbers
0
GAIL (India) employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 12:49
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/14
Last earnings filing: 2019/08/09
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.