Saturday, June 27, 2020

GAIL (India) Ltd – Natural gas will add value


GAIL (India) Ltd closes   at 105.15 with  a Gain   of   +1.90%   on    26-June- 2020   with formation of  a  Green  Candle    on Daily  Price Chart.
About the Company : GAIL (India) is also engaged in the business of Oil and Gas Exploration and Production to increase the access to gas supplies through equity and joint venture participations
The Company  has posted Net Sales / Revenue   of 72057.00 Cr & Net Profit of 6620.60 Cr in FY2020 and expected to post Net Sales / Revenue   of 63473.40 Cr & Net Profit of 4266.30Cr in FY2021 and Net Sales / Revenue   of 71993.30 Cr & Net Profit of 5214.10Cr in FY2022 & Net Sales / Revenue   of 80733.20 Cr & Net Profit of 5718.20Cr in FY2023 .
Valuations  : The Company is now Trading at X 0.40  of its Value. We have valued the company with its  expected Financial Year 2020 earnings  , which is now almost  ~60%  Discount  to its value & X0.65 of its FY2021 earning with a Discount   of ~35%   and X 0.53  of its FY2022  earning with a Discount  of ~ 47% and X 0.49  of its FY2023 earning with a Discount  of ~ 51%.
Debt to Equity Ratio ( D/E Ratio )  which is 11.20  in FY2020 is expected to improve to  7.7 in FY2023.
The Fare Value of Equity Per Share is 161.73 for FY2021 and 198.68 for FY2022 and 216.76 for FY2023.
Disclaimer : We are / may going to take exposure shortly.
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