NSEI:GAIL

Stock Analysis Report

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Market Cap

₹688.5b

Last Updated

2021/06/20 12:11 UTC

Data Sources

Company Financials +

Executive Summary

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


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 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

-5.3%

GAIL

-8.9%

IN Gas Utilities

-1.5%

IN Market


1 Year Return

55.8%

GAIL

136.3%

IN Gas Utilities

60.8%

IN Market

Return vs Industry: GAIL underperformed the Indian Gas Utilities industry which returned 137.2% over the past year.

Return vs Market: GAIL underperformed the Indian Market which returned 60.9% over the past year.


Shareholder returns

GAILIndustryMarket
7 Day-5.3%-8.9%-1.5%
30 Day6.4%3.6%4.3%
90 Day13.3%24.9%10.8%
1 Year61.7%55.8%140.5%136.3%63.3%60.8%
3 Year3.0%-8.8%61.5%48.2%40.4%33.5%
5 Year73.2%46.2%62.7%41.9%96.5%81.7%

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?

11.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAIL (₹155.05) is trading above our estimate of fair value (₹129.49)

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 (11.4x) compared to the Indian Gas Utilities industry average (26.6x).

PE vs Market: GAIL is good value based on its PE Ratio (11.4x) compared to the Indian market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: GAIL is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: GAIL is good value based on its PB Ratio (1.3x) compared to the IN Gas Utilities industry average (5.1x).


Future Growth

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

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAIL's forecast earnings growth (7.8% per year) is above the savings rate (6.8%).

Earnings vs Market: GAIL's earnings (7.8% per year) are forecast to grow slower than the Indian market (21.1% per year).

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

Revenue vs Market: GAIL's revenue (13.9% per year) is forecast to grow faster than the Indian market (12.7% per year).

High Growth Revenue: GAIL's revenue (13.9% 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 (12.8%).


Past Performance

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

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAIL has high quality earnings.

Growing Profit Margin: GAIL's current net profit margins (10.7%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: GAIL's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: GAIL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GAIL had negative earnings growth (-34.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (-7.7%).


Return on Equity

High ROE: GAIL's Return on Equity (11.5%) is considered low.


Financial Health

How is GAIL (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: GAIL's short term assets (₹108.7B) do not cover its short term liabilities (₹125.5B).

Long Term Liabilities: GAIL's short term assets (₹108.7B) do not cover its long term liabilities (₹155.5B).


Debt to Equity History and Analysis

Debt Level: GAIL's debt to equity ratio (12.7%) is considered satisfactory.

Reducing Debt: GAIL's debt to equity ratio has reduced from 24.8% to 12.7% over the past 5 years.

Debt Coverage: GAIL's debt is well covered by operating cash flow (133%).

Interest Coverage: GAIL's interest payments on its debt are well covered by EBIT (28.3x coverage).


Balance Sheet


Dividend

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

3.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAIL's dividend (3.22%) is higher than the bottom 25% of dividend payers in the Indian market (0.38%).

High Dividend: GAIL's dividend (3.22%) is in the top 25% of dividend payers in the Indian market (1.58%)


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 reasonably low payout ratio (36.7%), 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 (39.9% 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 (58 yo)

1.33yrs

Tenure

₹8,745,000

Compensation

Shri. 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. Shri. Jain has been the Chairman & M...


CEO Compensation Analysis

Compensation vs Market: Manoj's total compensation ($USD117.92K) is below average for companies of similar size in the Indian market ($USD824.64K).

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


Leadership Team

Experienced Management: GAIL's management team is considered experienced (2.5 years average tenure).


Board Members

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: ₹688.482b
  • Shares outstanding: 4.44b
  • Website: https://www.gailonline.com

Number of Employees


Location

  • GAIL (India) Limited
  • GAIL Bhawan
  • 16 Bhikaji Cama Place
  • New Delhi
  • Delhi
  • 110066
  • India

Listings


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 Analysis2021/06/20 12:11
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.