GAIL (India) Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹147,656.56 crore, PE ratio of 14.92, debt-to-equity ratio of 28.23, and return on equity of 13.91%. These figures reflect the company’s financial health and current market valuation.
Content:
GAIL Ltd Overview
GAIL (India) Ltd is India’s leading natural gas processing and distribution company. It operates in the energy sector, focusing on natural gas transmission, marketing, petrochemicals, LPG, and liquid hydrocarbon production and distribution.
The company has a market capitalization of ₹147,656.56 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 9.68% below its 52-week high and 101.41% above its 52-week low.
GAIL (India) Financial Results
GAIL (India) Ltd experienced fluctuating financial performance from FY 22 to FY 24. Sales decreased from ₹1,45,668 crore in FY 23 to ₹1,33,228 crore in FY 24. Operating profit increased significantly from ₹7,488 crore to ₹14,296 crore, with a corresponding OPM improvement from 5% to 11%.
- Revenue Trend: Sales decreased from ₹1,45,668 crore in FY 23 to ₹1,33,228 crore in FY 24.
- Equity and Liabilities: Equity capital remained at ₹6,575 crores, reserves rose to ₹70,422 crores from ₹58,352 crores in FY 23, and total liabilities increased to ₹1,24,717 crores from ₹1,07,781
- Profitability: Net profit improved from ₹5,596 crore in FY 23 to ₹9,903 crore in FY 24, reflecting better operational efficiency.
- Earnings per Share (EPS): EPS decreased from ₹28 in FY 22 to ₹15 in FY 24.
- Return on Net Worth (RoNW): While specific RoNW figures are not provided, the increase in net profit suggests an improvement in RoNW.
- Financial Position: The EBITDA grew from ₹8,816 crore in FY 23 to ₹15,304 crore in FY 24, indicating a stronger financial position.
GAIL Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,33,228 | 1,45,668 | 92,770 |
| Expenses | 1,18,932 | 1,38,180 | 77,618 |
| Operating Profit | 14,296 | 7,488 | 15,152 |
| OPM % | 11 | 5 | 16 |
| Other Income | 1,008 | 1,328 | 1,172 |
| EBITDA | 15,304 | 8,816 | 16,324 |
| Interest | 719 | 367 | 202 |
| Depreciation | 3,672 | 2,702 | 2,420 |
| Profit Before Tax | 10,913 | 5,748 | 13,701 |
| Tax % | 25 | 29 | 23 |
| Net Profit | 9,903 | 5,596 | 12,304 |
| EPS | 15 | 9 | 28 |
| Dividend Payout % | 37 | 47 | 36 |
* Consolidated Figures in Rs. Crores
GAIL Limited Company Metrics
GAIL’s market capitalization is ₹147,656.56 crore, with a book value of ₹117 per share and a face value of ₹10 per share. The company has a total debt of ₹21,793.77 crore, an ROE of 13.91%, an asset turnover ratio of 1.17, and a dividend yield of 2.45%.
Market Capitalization:
Market Capitalization represents the total market value of GAIL’s outstanding shares, amounting to ₹147,656.56 crore.
Book Value:
The book value per share of GAIL is ₹117 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of GAIL’s shares is ₹10, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 1.17 measures how efficiently GAIL uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of GAIL stands at ₹21,793.77 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 13.91% measures GAIL’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of GAIL is ₹5,474.77 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 2.45% shows the annual dividend payment as a percentage of GAIL’s current share price, indicating the return on investment from dividends alone.
GAIL (India) Stock Performance
GAIL (India) Ltd delivered outstanding returns, with a 101% return in one year and consistent 33.0% returns over both three and five years. This strong performance showcases the company’s significant growth potential and its ability to deliver robust returns to its investors across various time frames.
| Period | Return on Investment (%) |
| 1 Year | 101 |
| 3 Years | 33.0 |
| 5 Years | 33.0 |
Example: If an investor had invested ₹1,000 in GAIL Limited’s stock:
1 year ago, their investment would be worth ₹2,010.
3 years ago, their investment would have grown to ₹1,330.
5 years ago, their investment would have increased to approximately ₹1,330.
GAIL Limited Peer Comparison
GAIL (India) Ltd, with a CMP of ₹234 and a P/E ratio of 14, boasts a market cap of ₹1,53,542 Crores and a one-year return of 101%. This outperforms peers like Adani Total Gas and Gujarat Gas, which saw returns of 34% and 35%, respectively, demonstrating GAIL’s superior market performance and growth.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| GAIL (India) | 234 | 14 | 1,53,542 | 101 | 1,80,08,734 | 1 | 1 | 5 | 35 |
| Adani Total Gas | 875 | 140 | 96,311 | 34 | 42,93,469 | -1 | 1 | 31 | -14 |
| Petronet LNG | 363 | 14 | 54,587 | 61 | 62,58,564 | 8 | 1 | 4 | 35 |
| Gujarat Gas | 637 | 36 | 43,786 | 35 | 18,73,092 | -3 | 1 | 7 | 9 |
| Indraprastha Gas | 548 | 22 | 38,332 | 20 | 10,95,404 | 4 | 1 | 2 | 25 |
| Guj.St.Petronet | 333 | 12 | 18,785 | 17 | 10,47,113 | 7 | 1 | 18 | -13 |
| Mahanagar Gas | 1,813 | 15 | 17,907 | 69 | 4,02,735 | 9 | 1 | 5 | 23 |
GAIL (India) Shareholding Pattern
GAIL (India) Ltd’s shareholding pattern has shown slight changes from December 2023 to June 2024. Promoter holdings slightly increased from 51.90% to 51.92%. FII ownership saw a marginal increase, while DII holdings slightly decreased. Retail and other holdings experienced minor fluctuations but remained relatively stable.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 51.92 | 51.90 | 51.90 |
| FII | 15.20 | 14.17 | 14.24 |
| DII | 18.25 | 19.68 | 19.37 |
| Retail & others | 14.65 | 14.26 | 14.50 |
GAIL (India) History
GAIL (India) Limited is a prominent player in India’s natural gas processing and distribution sector. The company operates through various segments, including Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Liquid Hydrocarbons, and Other segments such as City Gas Distribution (CGD), GAIL Tel, and exploration and production (E&P).
GAIL’s core business revolves around the sourcing, trading, and transmission of natural gas. The company owns and operates an extensive network of approximately 14,500 kilometers of natural gas pipelines, forming the backbone of India’s natural gas infrastructure. This vast network enables GAIL to efficiently transport and distribute natural gas across the country.
In addition to its primary focus on natural gas, GAIL has diversified its operations into related sectors. The company is involved in the production of LPG, liquid hydrocarbons, and petrochemicals. GAIL is also expanding its presence in renewable energy, including solar, wind, and biofuel projects, demonstrating its commitment to sustainable energy solutions.
How To Invest In GAIL Ltd Share?
To invest in GAIL Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for GAIL shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
GAIL (India) Limited Fundamental Analysis – FAQs
Fundamental analysis of GAIL (India) examines key financial metrics: Market Cap (₹147,656.56 crore), PE Ratio (14.92), Debt to Equity (28.23), and Return on Equity (13.91%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the energy sector.
The market capitalization of GAIL (India) Ltd is ₹147,656.56 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
GAIL Limited is India’s leading natural gas processing and distribution company. It operates in various segments of the energy sector, including natural gas transmission, marketing, petrochemicals, LPG production, and distribution. The company plays a crucial role in India’s energy infrastructure.
GAIL Limited is a public sector undertaking (PSU) under the Ministry of Petroleum and Natural Gas, Government of India. While the government holds a majority stake, it’s a publicly listed company with multiple shareholders. The company is managed by a board of directors appointed in accordance with government regulations.
The main shareholders of GAIL include the Government of India as the majority stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current and accurate shareholding information, refer to the latest pattern disclosed by the company.
GAIL operates in the energy industry, specifically in the natural gas and petrochemicals sector. The company is involved in natural gas processing, transmission, distribution, and marketing. It also has interests in LPG production, petrochemicals, and renewable energy, playing a crucial role in India’s energy landscape.
To invest in GAIL shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if GAIL is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
