Executive Summary
GAIL (India) Limited operates as a natural gas transmission company in India and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -20.2% per year for the next 3 years
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.4%
GAIL
0.6%
IN Gas Utilities
1.3%
IN Market
1 Year Return
-32.7%
GAIL
0.8%
IN Gas Utilities
-10.7%
IN Market
Return vs Industry: GAIL underperformed the Indian Gas Utilities industry which returned -0.1% over the past year.
Return vs Market: GAIL underperformed the Indian Market which returned -11.3% over the past year.
Shareholder returns
| GAIL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | 0.6% | 1.3% |
| 30 Day | 7.2% | 9.3% | 7.0% |
| 90 Day | 27.9% | 30.1% | 29.4% |
| 1 Year | -28.5%-32.7% | 4.2%0.8% | -9.0%-10.7% |
| 3 Year | -15.0%-23.7% | 24.6%15.8% | 0.08%-5.2% |
| 5 Year | 16.5%0.2% | 18.7%5.6% | 23.3%12.0% |
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
2 months ago | Simply Wall St
Calculating The Fair Value Of GAIL (India) Limited (NSE:GAIL)3 months ago | Simply Wall St
Here's Why GAIL (India) (NSE:GAIL) Has A Meaningful Debt Burden3 months ago | Simply Wall St
What Is GAIL (India)'s (NSE:GAIL) P/E Ratio After Its Share Price Tanked?Valuation
Is GAIL (India) undervalued compared to its fair value and its price relative to the market?
4.95x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GAIL (₹103.5) is trading above our estimate of fair value (₹51.87)
Significantly Below Fair Value: GAIL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GAIL is good value based on its PE Ratio (5x) compared to the Gas Utilities industry average (15.9x).
PE vs Market: GAIL is good value based on its PE Ratio (5x) compared to the Indian market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: GAIL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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 (4.6x).
Next Steps
Future Growth
How is GAIL (India) forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-20.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GAIL's earnings are forecast to decline over the next 3 years (-20.2% per year).
Earnings vs Market: GAIL's earnings are forecast to decline over the next 3 years (-20.2% per year).
High Growth Earnings: GAIL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: GAIL's revenue is expected to decline over the next 3 years (-3.4% per year).
High Growth Revenue: GAIL's revenue is forecast to decline over the next 3 years (-3.4% 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 (11.8%).
Next Steps
Past Performance
How has GAIL (India) performed over the past 5 years?
21.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GAIL has a high level of non-cash earnings.
Growing Profit Margin: GAIL's current net profit margins (13%) are higher than last year (8.6%).
Past Earnings Growth Analysis
Earnings Trend: GAIL's earnings have grown significantly by 21.2% per year over the past 5 years.
Accelerating Growth: GAIL's earnings growth over the past year (43.9%) exceeds its 5-year average (21.2% per year).
Earnings vs Industry: GAIL earnings growth over the past year (43.9%) underperformed the Gas Utilities industry 60.6%.
Return on Equity
High ROE: GAIL's Return on Equity (19.3%) 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 (₹119.9B) do not cover its short term liabilities (₹124.8B).
Long Term Liabilities: GAIL's short term assets (₹119.9B) do not cover its long term liabilities (₹130.8B).
Debt to Equity History and Analysis
Debt Level: GAIL's debt to equity ratio (12.8%) is considered satisfactory.
Reducing Debt: GAIL's debt to equity ratio has reduced from 51% to 12.8% over the past 5 years.
Debt Coverage: GAIL's debt is well covered by operating cash flow (131.7%).
Interest Coverage: GAIL's interest payments on its debt are well covered by EBIT (22.5x coverage).
Balance Sheet
Next Steps
Dividend
What is GAIL (India) current dividend yield, its reliability and sustainability?
6.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GAIL's dividend (6.18%) is higher than the bottom 25% of dividend payers in the Indian market (0.7%).
High Dividend: GAIL's dividend (6.18%) is in the top 25% of dividend payers in the Indian market (2.92%)
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: With its low payout ratio (19.2%), 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 (29% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Manoj Jain (57yo)
0.42
Tenure
₹6,535,000
Compensation
Mr. Manoj Jain serves as Additional Director at 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 ($USD86.55K) is below average for companies of similar size in the Indian market ($USD1.38M).
Compensation vs Earnings: Insufficient data to compare Manoj's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 0.42yr | ₹6.54m | 0.000030% ₹139.3k | |
| Director of Finance | 1.58yrs | ₹2.60m | 0.000010% ₹46.4k | |
| Compliance Officer & Company Secretary | 4.17yrs | ₹4.87m | no data | |
| Director of Human Resources & Whole-Time Director | no data | ₹8.80m | 0.000020% ₹92.9k | |
| General Manager of Finance & Accounts | no data | no data | no data | |
| Executive Director of Corporate Communications & CSR | no data | no data | no data | |
| Chief Manager of Policy & HR | no data | no data | no data | |
| Chief Manager of Security | no data | no data | no data | |
| Chief Manager of LPG | no data | no data | no data | |
| Chief Manager of Corporate Communications | no data | no data | no data |
2.5yrs
Average Tenure
58yo
Average Age
Experienced Management: GAIL's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 0.42yr | ₹6.54m | 0.000030% ₹139.3k | |
| Director of Finance | 1.58yrs | ₹2.60m | 0.000010% ₹46.4k | |
| Director of Human Resources & Whole-Time Director | no data | ₹8.80m | 0.000020% ₹92.9k | |
| Part-Time Government Nominee Director | 3.58yrs | no data | no data | |
| Non-Official Part-Time Independent Director | 2.83yrs | ₹670.00k | no data | |
| Non-Official Part-Time Independent Director | 2.83yrs | ₹480.00k | no data | |
| Independent Director | 1.92yrs | ₹460.00k | no data | |
| Government Nominee Director | 0.33yr | no data | no data |
1.9yrs
Average Tenure
58yo
Average Age
Experienced Board: GAIL's board of directors are not considered experienced ( 1.9 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: ₹464.319b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532155 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Apr 1997 |
| GAIL | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Apr 1997 |
| GAIL.F | OTCPK (Pink Sheets LLC) | SPONSORED GDR | US | USD | Feb 2000 | |
| GAID | LSE (London Stock Exchange) | SPONSORED GDR | GB | USD | Feb 2000 | |
| GQI | DB (Deutsche Boerse AG) | SPONSORED GDR | DE | EUR | Feb 2000 | |
| GAIDL | BATS-CHIXE (BATS 'Chi-X Europe') | SPONSORED GDR | GB | USD | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/02 12:36 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.