This gas stock, which jumped 89% in a year, hit record high today; check out the reason
Stock market today: The stock jumped after Morgan Stanley gave an "overweight" rating to the stock with a target price of Rs 254 from Rs 213 earlier.
Stock market today: It was a good start to the week for Dalal Street on Monday, April 8, as investors lapped up stocks from all sectors except IT services. Both Sensex and Nifty hit fresh record highs during the trade.
The broader market, too, participated in the rally. There were a lot of noteworthy stock-specific actions, and one stock that is worth mentioning is GAIL. The stock of the PSU, which is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, and E&P, among others, hit a record high of Rs 201.80 on the BSE today.
The stock jumped after Morgan Stanley gave an "overweight" rating to the stock with a target price of Rs 254 from Rs 213 earlier. The brokerage, in its note, said that, between FY24E–27E, the transmission volume is expected to increase by 8 per cent CAGR. The gas demand will increase during the summer season, it added. It further said that GAIL's marketing operating profits will remain steady while the EBITDA mix is seen improving.
Analysts at the brokerage firm note that the EBITDA share of transmission and petchem has increased to 60 per cent from the pre-COVID period of 51 per cent.
In the coming quarters, petrochemical PAT and margins are expected to improve. Dividend payout is also expected to improve by 50 per cent while EPS, or earnings per share, is seen improving by 25 per cent. In a year, shares of GAIL have given a return of 89 per cent, In comparison, the benchmark Nifty50 index has risen over 28 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
04:05 PM IST