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GAIL (India) Ltd Stock Analysis

Large Cap
Evaluated by 8153 users | BSE: 532155 | NSE: GAIL |
Industrial Gases & Fuels

GAIL (India) Ltd. was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). It is the largest state-owned natural gas processing and distribution company in India. It...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
GAIL (India) Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18.13%15.44%13.77%12.38%8.46%6.69%9.3%11.22%14.18%13.31%
Value Creation Index 0.450.260.120.01-0.31-0.46-0.24-0.090.150.08
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 32,53740,44147,52357,50856,74251,72148,14953,66275,12671,871
Y-o-Y Gr. Rt.-24.3%17.5%21%-1.3%-8.9%-6.9%11.5%40%-4.3%
Adjusted EPS (Rs.) 7.888.138.99.136.574.838.0910.1713.5413.8
Y-o-Y Gr. Rt.-3.2%9.5%2.6%-28%-26.5%67.5%25.7%33.1%1.9%
Book Value per Share (Rs.) 42.6947.9553.7260.0364.5677.8184.5989.4297.7697.49
Adjusted Net Profit 3,5533,6654,0144,1172,9612,1773,6494,5886,1096,223
Net Op. Cash Flow (Rs. Cr.) 3,0774,4885,0334,9222,4444,0715,7618,6637,8766,888
Debt to Cash Flow from Ops 0.751.191.82.093.911.980.880.240.130.81
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
GAIL (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.2%4.8%14.3%-4.3%
Adjusted EPS 6.4%16%19.5%1.9%
Book Value per Share 9.68.64.8-0.3
Share Price 0.7% 3.6% -11.6% -1.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.7117.9317.5116.0510.546.789.9611.6914.4714.13
Operating Profit Margin (%) 1713.8213.411.628.258.3213.3214.4212.7911.37
Net Profit Margin (%) 10.929.068.457.165.224.217.588.558.138.66
Debt to Equity 0.120.250.370.380.330.230.130.050.020.13
Working Capital Days 103929387105114105906884
Cash Conversion Cycle -23347986613
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 52.11%
Institutions 43.47%
Non-Institutions 4.42%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of GAIL (India) Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that GAIL (India) Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of GAIL (India) Ltd's performance infers:

GAIL (India) Ltd earnings have grown by 16%, whereas share price has appreciated 3.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of GAIL (India) Ltd share prices over the last 10 years. Here is what we found out:

GAIL (India) Ltd share price has appreciated -1.3% annually over the past ten years.

GAIL (India) Ltd. was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). It is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. The company was initially given the responsibility of construction, operation & maintenance of the Hazira - Vijaypur -Jagdishpur (HVJ) pipeline Project. It was one of

GAIL (India) Ltd. was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). It is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. The company was initially given the responsibility of construction, operation & maintenance of the Hazira - Vijaypur -Jagdishpur (HVJ) pipeline Project. It was one of the largest cross-country natural gas pipeline projects in the world.

Business area of company

The Company is engaged in gas marketing. The Company's segments include Transmission services, which includes natural gas and liquid petroleum gas (LPG); Natural Gas Trading; Petrochemicals; LPG and other Liquid Hydrocarbons; City Gas Distribution, and Other Segments, which includes GAIL TEL, exploration and production (E&P), City Gas and Power Generation. The Company is engaged in activities, including transportation through pipeline; manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms; extraction of crude petroleum; extraction of natural gas, and electric power generation, transmission and distribution.

Awards

  • Achievement of 100% Safety Index GPU-Gandhar(2010-11) was duly recognized by BSC, UK. GPU-Gandhar was conferred 'International Safety Award' for 4th time from
  • GAIL (India) has been ranked no.1 company among gas utilities in Asia in the Platts Global Ranking of Energy Companies.
  • GAIL (India) was conferred 'MOU EXCELLENCE AWARD' by the Department Of Public Enterprises for the year 2008-09 in the petroleum sector.
  • GAIL (India) was conferred a Certificate of Recognition for Excellence in Corporate Governance in the 10th ICSI National Award for Excellence in Corporate Governance 2010 as one of the Top Companies adopting Excellent Practices in Corporate Governance.
  • National Award for Excellence in Cost Management 2009 GAIL won the Third Award in the public sector Manufacturing (Large) category
  • SCOPE Meritorious Award to GAIL (India) Limited for Corporate Governance for the year 2007-08.
  • India´s Most Customer Responsive Company in Manufacturing sector.
  • Highest Wealth Creator in Manufacturing sector.
  • Rajiv Gandhi National Quality Award as the best performer among the Large Scale Manufacturing Industry.
  • The PetroFed oil & Gas pipeline Transportation - Company of the Year for 2007-2008 Award honours the leading performance in transporting crude oil, petroleum products and natural gas through pipelines in India during the year. This award honours GAIL (India) Limited for their leading performance towards growth of infrastructure, optimal utilisation during hydrocarbons transportation in India in 2007-08 while meeting the norms of health, safety and environment protection.
  • GAIL receives Oil & Gas Pipeline Transportation Company of the year, besides Project Management (Rs 500 crore to Rs 2,000 crore category) of the year, the Environmental Sustainability of the year category in the Petrofed Awards 2012 and Woman Executive of the Year in Oil & Gas Industry.
  • GAIL DBPL project receives Platts Premier Project Construction Award for 2013.
  • GAIL adjudged ‘Company of the Year’ for Project Management for Dabhol - Bengaluru pipeline project at the Petroleum Federation of India (PetroFed) Oil & Gas Industry Awards 2013.
  • GAIL declared the top Indian company in the ‘Gas-Processing, Distribution and Marketing’ Sector for the Dun & Bradstreet Corporate Awards 2014. 
  • GAIL CSR project wins Prestigious CII-National Water Awards for Excellence in Water Management-2016.
  • Shri B C Tripathi, CMD, GAIL receives the fastest growing Maharatna PSU Award.
  • GAIL (India) has won the leaders award in the Mega Large Business, Process Sector category in the 11th edition of Frost & Sullivan - MEASA and TERI - The Energy and Resources Institute's Sustainability 4.0 Awards 2020.

Milestones

  • 1987 - HVJ (Hazira - Vijaipur - Jagdishpur) Natural Gas pipeline commissioned. 
  • 1989 - First Year of profit registered.  
  • 1990 - LPG Plant Phase - I at Vijaipur commissioned.  
  • 1992 - Gas Marketing functions transferred to GAIL.  
  • 1993 - Maiden dividend of Rs. 20 Crores paid to its shareholders.  
  • 1994 - First JV Mahanagar Gas Limited formed with British Gas incorporated to implement Mumbai City Gas Distribution project.  
  • 1995 - Propane recovery plants at Vijaipur commissioned.  
  • 1996 - GAIL listed in NSE, BSE and DSE.  
  • 1997 - Government of India granted Navratna status to GAIL.  
  • 1998 - Indraprastha Gas Limited (IGL) incorporated for supply of gas to household sector, transport sector & commercial consumers in Delhi.  
  • 1999 - LPG plants at Usar and Lakwa commissioned.  
  • 1999 - Uttar Pradesh Petrochemical Complex (UPPC) at Pata commissioned with a design capacity of 3 lacs TPA of Ethylene to produce 2. 60 lacs TPA of HDPE & LLDPE.
  • 2000 - LPG plant at Pata with a design capacity of 2.58 lacs TPA of LPG commissioned.  
  • 2000 - Participated in under NELP- I and 2 blocks awarded.  
  • 2001 - Jamnagar-Loni LPG Pipeline Project, world’s longest and India's first Cross-Country LPG 1269 km long pipeline commissioned.  
  • 2001 - LPG plant at Gandhar commissioned. 
  • 2002 - GAIL picks up 12% equity stake in GSEGs 156MW power project in Gujarat.  
  • 2003 - GAIL has an initial success in the form of significant gas find in the block A-1 in Myanmar and discovery of Oil and Gas in the Cambay Block.  
  • 2003 - Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL, incorporated in August 2003, in the field of distribution and marketing of Auto LPG, CNG for vehicles and retailing of natural gas in cities of Andhra Pradesh.  
  • 2003 - Vizag- Secunderabad LPG pipeline, the 580 km pipeline with a maximum throughput of 1.16 MMPTPA completed.  
  • 2003 - GAIL successfully secures participation in 2 retail gas companies in Egypt, Fayum Gas Company and Shell CNG.  
  • 2004 - Dahej - Vijaipur natural gas pipeline commissioned.  
  • 2004 - A wholly-owned subsidiary company GAIL Global (Singapore) Pte Ltd formed in Singapore.  
  • 2004 - Platts declares GAIL as the first among Global Gas Utilities based on Return on Invested Capital (ROIC) in its worldwide survey of Top 250 Energy Companies in 2004.  
  • 2004 - Tripura Natural Gas Co. Ltd., a Joint Venture for city gas project in Tripura and UP Central Gas Ltd., a Joint Venture for city gas project with BPCL in Kanpur, incorporated.  
  • 2004 - GAIL acquired 15% equity stake in NatGas, Egypt. 
  • 2005 - Inauguration of the National Gas Management Centre (NGMC) of GAIL at NOIDA.  
  • 2006 - GAIL brings India’s first spot LNG cargo at Dahej.  
  • 2006 - GAIL consortium wins 3 CBM blocks in III round of bidding.  
  • 2007 - MoP&NG authorization for 5 new major pipelines received.  
  • 2007 - Brahmaputra Cracker and Polymer Limited, a Joint Venture Company led by GAIL, formed for implementing Assam Gas Cracker Project.  
  • 2007 - GAIL forms a Joint Venture Company (JVC) with China Gas Global Energy Holdings Limited.  
  • 2007 - Expansion of Petrochemical Plant at Pata for increasing capacity from 310,000 TPA LLDPE/HDPE to 410,000 TPA completed.  
  • 2008 - Dahej - Panvel- Dabhol pipeline commissioned.  
  • 2008 - GAIL Gas Limited incorporated for CGD.  
  •  2008 - GAIL Gas limited wins the rights for rolling out city gas distribution projects in Meerut, Sonepat, Dewas and Kota.  
  • 2009 - GAIL gets SCOPE Meritorious Award for Corporate Governance for the year 2007-08.  
  • 2010 - Representative Office in Egypt opened.  
  • 2010 - GAIL ranked no.1 company among gas utilities in Asia in the Platts Global Ranking.
  • 2011 - Shri S. Jaipal Reddy dedicated GAIL’s Chainsa - Sultanpur – Neemrana pipeline to the Nation.
  • 2011 - GAIL Gas Limited and Vadodara Mahanagar Sewa Sadan set up Joint Venture for City Gas Distribution.
  • 2011 - GAIL (India) Limited was conferred the 'Managing India Award' for the 'Outstanding PSU of the Year' by All India Management Association. GAIL is the first PSU to be conferred this award.
  • 2012 - GAIL conferred MoU Excellence Award for the year 2009-10 for Best Performing CPSE in the Petroleum Sector consecutively for second year- GAIL has been ranked World’s No. 1 in Downstream Operations in Platts Global Energy Awards- GAIL’s 2200 km Dahej-Vijaipur-Dadri-Bawana-Nangal-Bhatinda cross-country pipeline inaugurated by Prime Minister- GSPA signed between GAIL and TurkrnenGaz for Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project. 
  • 2012 - GAIL signed GSPA for purchase of gas from Turkmenistan.
  • 2014 - The 22-storey GAIL Jubilee Tower has been designed as per LEED-Platinum Green Building norms. The building has its own captive power generation plant using gas engine generators and the waste heat recovered is used to run the Air Conditioning system. A 30 KW solar power plant has been installed for area lighting. Its electricity load will be 40% less than other similar high-rises. The building is equipped with high performance glass with insulation on walls, occupancy and lux level sensors.
  • 2015 -  Inauguration of construction work of Jagdishpur - Haldia natural gas pipeline Phase 1.
  • 2016 -  BCPL Petrochemical Complex commissioned. 
  • 2016 - Varanasi City Gas Distribution Project.
  • 2017 - Launch of CGD Projects in Cuttack and Bhubaneswar.
  • 2017 - Inauguration of Bengaluru City Gas Distribution Project.
  • 2017 - Inauguration of PNG supply in Bhubaneswar.
  • 2017 - Inauguration of CNG stations in Bhubaneswar.
  • 2018 -  GAIL’s first Chartered LNG Vessel carrying long term US LNG arrives at Dabhol.
  • 2018 - Inauguration of CNG Stations in Cuttack. 
  • 2018 - 1st LNG cargo under long term contract with Russia arrives at Dahej.
  • 2018 - Commencement of work for Talcher Fertilizers.
  • 2019 - Dedication of Phase I of Pradhan Mantri Uurja Ganga Pipeline and Inauguration of Patna CGD.
  • 2019 - Inauguration of Ranchi CGD.
  • 2019 - Inauguration of Jamshedpur CGD.
  • 2020 - GAIL (India) and Carbon Clean Solutions have signed a Memorandum of Understanding for exploring project development opportunities in Compressed Biogas value chain in India.  
  • 2020 - GAIL (India) has inked Memorandum of Understanding with police department for constructing a new Bharosa Centre at Medchal-Malkajgiri in Telangana, as part of corporate social responsibility activities.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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