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Wednesday, February 26, 2020

GAIL shares settle nearly 6 per cent higher post strong Q3 results, interim dividend announcement

On Monday, GAIL reported 12.94 per cent year-on-year rise in its consolidated net profit at Rs 2,029.51 crore for the quarter ended December 31, 2019. Separately, it also declared an interim dividend of Rs 6.40 per share.

By: Express Web Desk | New Delhi | Updated: February 11, 2020 4:44:40 pm
GAIL (India) reported 12.94 per cent year-on-year rise in its consolidated net profit at Rs 2,029.51 crore for the December 2019 quarter. However, the consolidated revenue slipped 11.52 per cent on-year to Rs 17,898.16 crore during the period.

Shares of GAIL (India) climbed as high as 6.61 per cent on the BSE and National Stock Exchange (NSE) during the intraday trade on Tuesday, a day after the company announced a strong set of financial numbers for the quarter ended December 2019.

The scrip rose 6.61 per cent to Rs 129.85 apiece on the BSE and NSE during the intraday trade on Tuesday. It eventually settled at Rs 129.10 apiece on the BSE, up 5.99 per cent and at Rs 129.00 per share on the NSE, up 5.91 per cent.

In terms of trade volumes, over 9.06 lakh shares were traded on the BSE during the trade session, while over 3.10 crore shares exchanged hands on the NSE.

On Monday, the public sector gas distribution company reported a 12.94 per cent year-on-year rise in its consolidated net profit at Rs 2,029.51 crore for the quarter ended December 31, 2019. The company had posted a consolidated net profit of Rs 1,797.04 crore during the corresponding period year ago, as per the financial statements GAIL shared with the BSE.

However, the consolidated revenue slipped 11.52 per cent on-year to Rs 17,898.16 crore during the December 2019 quarter, the data showed. In a separate notification to the stock exchanges, the public sector enterprise declared an interim dividend of Rs 6.40 per share on the face value of Rs 10 each.

“We believe that the current price already captures the commodity risk and maintain BUY with a revised TP (target price) of INR 180,” JM Financial wrote in a post results research update.

HDFC Securities in its research update wrote, “We remain constructive on GAIL as the risk/reward is favorable. India will derive higher benefit from the low LNG prices as the domestic natural gas ecosystem (CGD network, RLNG terminals, pipelines, revamp of fertiliser plants) develops. New US liquefaction terminals will boost RLNG exports and also keep Henry Hub (HH) prices subdued, enabling GAIL to swap cargoes. Thus, US LNG is not a concern. Maintain BUY.” The brokerage has set a target price of Rs 190 on the GAIL stock.

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