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INVESTMENT INSIGHTS

Check Before You Invest : GAIL (India) Ltd

BSE: 532155 NSE: GAIL ISIN: INE129A01019
  |   Sector:  Oil & Gas   |   Industry:  Gas Transmission/Marketing

Snapshot

Q.1 Which industry/sub-sector does GAIL (India) Ltd belong to?
GAIL (India) Ltd belongs to the Oil & Gas sector, operating specifically within the Gas Transmission/Marketing segment.
Q.2 Is GAIL (India) Ltd a good quality company?
GAIL (India) Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is GAIL (India) Ltd undervalued or overvalued?
GAIL (India) Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is GAIL (India) Ltd a good buy now?
GAIL (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of GAIL (India) Ltd?
GAIL (India) Ltd revenue growth is 6.5% for FY-2025 , which is below its 5 year CAGR of 14.4% , indicating slower growth.
Q.2 Gross Profit margin of GAIL (India) Ltd?
GAIL (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.2% for FY-2025 , which is in line with its 5 year median of 11.2% , indicating stable margins.
Q.3 Operating Profit Margin of GAIL (India) Ltd?
GAIL (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.94% for FY-2025 , which is in line with its 5 year median of 10.94% indicating stable margins.
Q.4 Net Profit Margin of GAIL (India) Ltd?
GAIL (India) Ltd Net Profit Margin is 8.78% for FY-2025 , is in line with with its 5 year median of 8.78%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 11.2 11.2
Operating Profit Margin 10.94 10.94
Net Profit Margin 8.78 8.78
Q.5 Return on Asset of GAIL (India) Ltd?
GAIL (India) Ltd Return on Asset is 9.45%, which is above its 5 year historical median of 8.37%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of GAIL (India) Ltd?
GAIL (India) Ltd Return on equity is 15.39% for FY-2025 , which is above its historical median of 13.96%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of GAIL (India) Ltd?
GAIL (India) Ltd Return on capital employed is 17.11% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of GAIL (India) Ltd?
GAIL (India) Ltd Cash conversion cycle is 20 days, above its historical median of 18 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.08 1.08
ROE 15.39 13.96
ROCE 17.11 15.06
Cash Conversion Cycle 20 days 18 days
Q.9 Debt to Equity ratio of GAIL (India) Ltd?
GAIL (India) Ltd Debt-to-Equity ratio is 0.19 , which is in line with the industry average of 0.19 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of GAIL (India) Ltd?
GAIL (India) Ltd Debt to cash flow from operations is 1.04 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of GAIL (India) Ltd?
Promoters hold 51.88% of the GAIL (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of GAIL (India) Ltd vs industry peers?
GAIL (India) Ltd revenue CAGR is 14.37% , compared to the industry median CAGR of 14.37% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,41,903.5 1,33,228.5
Gross Profit 15,893.1 14,521.9
Operating Profit 15,430 14,296
Net Profit 12,463 9,903
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.08 1.08
ROE 15.39 13.96
ROCE 17.11 15.06
Cash Conversion Cycle (days) 19.74 18

Valuation & price assessment

Q.1 Stock return of GAIL (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.2% 13.8% 15.1% -14.8%
Q.3 Valuation ratios of GAIL (India) Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 12.72 10.08 16.95
Price to Book 1.22 1.27 2.35
Price to Sales 0.76 0.81 1.95
EV to EBITDA 8.5 8.37 11.15

Check more companies

1. Reliance Industries
2. ONGC
3. Indian Oil Corp.
4. BPCL
5. GAIL India
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