GAIL - Poised To Gain From Indian Gas Market Prospects: Nirmal Bang
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Nirmal Bang Report
Our optimism on GAIL India Ltd. is based on its long-term gas volume growth from Jagdishpur-Haldia and Bokaro-Dhamra Pipeline and sustained revival in gas marketing earnings that could surpass the FY19 peak.
Key concerns include:
potential risk of a reversal in the commodity cycle, which could hurt gas marketing, petchem and liquefied petroleum gas and hydrocarbon segments - combined share at 40% of GAIL’s Ebitda (FY20),
investments in an already crowded polypropylene market and
plans to raise debt of Rs 100 billion for its Rs 467 billion capex.
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