Axis Capital has initiated a Sell call on GAIL, setting a target price of ₹185 per share, indicating a potential downside of 23% from the current price of ₹239.20. The brokerage highlights risks in earnings due to rising LNG prices, which have surged 40% over the last six months.
Axis Capital expects a muted 3.3% compound annual growth rate (CAGR) in profit after tax (PAT) over FY24-27, with gas transmission volume growth remaining moderate. Additionally, the recovery of GAIL’s petrochemical business is expected to be weaker due to higher feedstock costs.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
