BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
GAIL India Ltd. reported stark improvement in sequential operating performance with Ebitda up 3.8 times QoQ at Rs 26.6 billion. Natural gas transmission volumes rose 7.5% QoQ at 116.3 million metric standard cubic metre per day versus 108.2 mmscmd driven by higher regassified liquefied natural gas sales.
Natural gas sales too increased 2.5% QoQ at 98.8 mmscmd versus 96.5 mmscmd. Petrochemicals sales surged substantially by 37.3% QoQ at 162,000 million tonne versus 118,000 mt.
Ebitda jump was attributable to increased gas transmission and marketing volumes coupled with higher transmission tariff realisation. Improvement in operating performance trickled down to bottom-line which rose 1.8 times QoQ at Rs 17.9 billion.
During Q1, GAIL India incurred capex of Rs 24 billion and guided for ~Rs 75 billion capex for FY24E.
Management remained upbeat on gas transmission segment and guided gas transmission volume of 123 mmscmd by end FY24E and 138-140 mmscmd by end-FY25E.
Based on Q1 performance and management guidance, we have upped our FY24E/ FY25E Ebitda estimate by 8%/ 10%.
We maintain our 'Reduce' rating with a SOTP based revised target price to Rs 115 (earlier Rs 105).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.