Reliance Securities: GAIL India’s Improving Crude Prices To Aid Earnings Recovery; Inexpensive Valuation
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Reliance Securities Report
GAIL India Ltd.’s gas transmission volume is expected to increase to 121 million metric standard cubic meters a day( mmscmd) in FY23 from 108mmscmd in FY20 on the back of-
1) incremental rise in consumption by five upcoming fertilizer plants; (2) ramp-up by new city gas distribution players in recently won geographical areas and (3) jump in domestic gas production from Krishna Godavari (KG) fields to approximately 45mmscmd.
Tariff revision as recently proposed by the Petroleum and Natural Gas Regulatory Board (PNGRB) is expected to benefit new pipelines and will not materially impact returns on GAIL’s existing pipeline network.
Our calculation suggests, every 10% rise/fall in gas pipeline tariffs will increase/decrease GAIL’s Ebitda by 5.7% in FY23E.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.