This PSU jumps 65% in 3 months, JP Morgan raises target to Rs 175; is it right time to enter the stock?

GAIL share price target, GAIL share price: Shares of state-owned GAIL (India) remained on investors' radar on Monday, February 26, after JPMorgan raised the target by Rs 5 on the PSU stock to Rs 175 from Rs 170 earlier. 

The global brokerage has maintained a 'neutral' rating on the Maharatna company stock.

"Multiples doubled from c.6x P/E to about 12x P/E. GAIL’s trading segment is likely to report strong earnings in March 2024 as well," the global brokerage said in its note.

According to the brokerage, the recent collapse in US Henry Hub prices combined with stable oil prices will drive GAIL’s trading margins up quarter-on-quarter (QoQ), while consensus projects a quarterly decline.

GAIL share price history: How GAIL shares have fared in the recent past

The natural gas transmission company stock has jumped 65 per cent in three months, outperforming the benchmark index Nifty, which rallied 12 per cent in the duration, as per Zee Business Research.

GAIL shares have rewarded investors with a return of over 70 per cent in the last 12 months, sharply outperforming a gain of 28 per cent in the Nifty50 and 66.3 per cent in the Nifty Oil & Gas indices.

How did GAIL perform in Q3?

Consolidated net profit at Gail for Q3 jumped multi-fold to Rs 3,193.34 crore on the back of a softening in the liquified natural gas (LNG) price. In Q3 FY23, the company’s net profit stood at Rs 397.59 crore.

Revenue from operations at the company stood at Rs 34,767.84 crore in the quarter ending December, a marginal decline from Rs 35,939.96 crore logged in the year-ago period.

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.