GAIL India (GAIL.NS)
Utilities · NSE · India
Fundamentals
Valuation and ratings
GAIL India trades at ₹171.71, which is 21% above the ₹135.55 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 38 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About GAIL India
GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. The company is involved in the transmission and marketing of natural gas through pipelines to the power, fertilizer, industrial, automotive, petrochemical, domestic, and commercial sectors; exploration and production activities; and marketing of compressed biogas, city gas, and biofuels. It also produces and markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, ethylene, propylene, and polypropylene; and manufactures petrochemicals, such as high-density and linear low-density polyethylene under the G-Lex and G-Lene brands. In addition, the company generates wind and solar power. GAIL (India) Limited was incorporated in 1984 and is based in New Delhi, India.
GAIL.NS passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is GAIL India (GAIL.NS) undervalued?
Against our discounted cash flow estimate of ₹135.55, GAIL.NS at ₹171.71 is 21% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is GAIL.NS's P/E ratio?
GAIL.NS trades at 15.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.