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'Buy' GAIL Maintains Motilal Oswal On Robust Transmission Outlook; Petchem Diversification To Fuel Growth
Motilal Oswal foresees limited downside from the current level amid GAIL's robust transmission volume growth, a steady marketing outlook and a diversified petchem portfolio.
21 Mar 2025, 09:55 AM IST 
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In the last five-and-a-half months, GAIL’s share price has corrected ~30% with the stock now trading at 9.2x FY27E P/E.
(Photo source: Company website)
GAIL is currently constructing 3,115km of gas transmission pipelines, including the Mumbai-Nagpur-Jharsuguda, KKBM and JHBD pipelines, and ramping up its petchem capacity by 1,860ktpa. The company expects to incur a cumulative capex of Rs 153 billion for transmission projects and Rs 173 billion for petchem projects. They are scheduled for completion next year.
