Jefferies has upgraded its rating on GAIL to “buy” with a target price of ₹240, implying a 22% upside from the current market price of ₹196.80. The brokerage noted a 7% year-over-year increase in GAIL’s EBITDA, which was marginally below estimates, supported by improved gas tax and petrochemicals performance.
Jefferies highlighted GAIL’s market share gains driven by new pipelines, with additional pipeline projects expected to be commissioned by mid-2025. The brokerage anticipates trading profitability to remain steady, aided by muted Henry Hub gas prices, and projects a 9% EBITDA compound annual growth rate (CAGR) over FY24-27.
Following a 20% correction from its recent peak, Jefferies views the stock’s risk-reward profile as favorable, supporting its upgraded stance on GAIL.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
