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GAIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | GAIL | Market Cap | 99,390 Cr. | Current Price | 151 ₹ | High / Low | 203 ₹ |
| Stock P/E | 12.8 | Book Value | 112 ₹ | Dividend Yield | 4.97 % | ROCE | 15.3 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 161 ₹ | DMA 200 | 173 ₹ |
| Chg in FII Hold | 0.35 % | Chg in DII Hold | -0.12 % | PAT Qtr | 1,603 Cr. | PAT Prev Qtr | 2,217 Cr. |
| RSI | 40.6 | MACD | -4.65 | Volume | 1,05,05,157 | Avg Vol 1Wk | 1,27,63,256 |
| Low price | 144 ₹ | High price | 203 ₹ | PEG Ratio | -4.43 | Debt to equity | 0.26 |
| 52w Index | 11.4 % | Qtr Profit Var | -19.5 % | EPS | 11.8 ₹ | Industry PE | 13.8 |
📊 Core Financials
- Revenue growth: PAT declined to 1,603 Cr. from 2,217 Cr., showing short-term weakness
- Profit margins: EPS at 11.8 ₹, ROE 14.1%, ROCE 15.3% — solid efficiency
- Debt ratios: Debt-to-equity at 0.26, manageable
- Cash flows: Strong profitability supports healthy cash generation
- Return metrics: ROE and ROCE slightly above industry averages
💹 Valuation Indicators
- P/E Ratio: 12.8, slightly below industry PE of 13.8, suggests undervaluation
- P/B Ratio: ~1.35 (151 ₹ / 112 ₹), reasonable
- PEG Ratio: -4.43, distorted due to earnings volatility
- Intrinsic Value: Current price appears undervalued compared to peers
🏢 Business Model & Competitive Advantage
- Operates in natural gas transmission, distribution, and petrochemicals
- Competitive advantage through government backing and strong infrastructure network
- Industry demand supported by energy transition and rising gas consumption
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 145–155 ₹ range
- Long-Term Holding: Recommended; fundamentals are stable and valuation is attractive
✅ Positive
- Strong ROE (14.1%) and ROCE (15.3%) indicate efficient capital use
- P/E ratio (12.8) below industry average, suggesting undervaluation
- Dividend yield at 4.97% provides strong shareholder returns
⚠️ Limitation
- PAT declined from 2,217 Cr. to 1,603 Cr.
- PEG ratio (-4.43) indicates distorted valuation
- Stock trading below DMA 50 (161 ₹) and DMA 200 (173 ₹), showing weak momentum
📰 Company Negative News
- Quarterly profit decline (-19.5%) indicates earnings volatility
- DII holding decreased (-0.12%)
- MACD at -4.65 indicates bearish sentiment
🌟 Company Positive News
- FII holding increased (+0.35%)
- Dividend yield at 4.97% adds strong shareholder value
- Stock price recovered from 52-week low of 144 ₹
🏭 Industry
- Industry PE at 13.8, GAIL trades slightly below peers
- Sector benefits from rising natural gas demand and energy diversification
🔎 Conclusion
- GAIL shows stable fundamentals with strong returns, manageable debt, and attractive dividend yield
- Valuation is slightly undervalued compared to industry peers, offering upside potential
- Recommended for long-term holding, with entry near 145–155 ₹ providing good risk-reward potential