On Tuesday, Investec has increased the price target for Gail (India) Ltd. (GAIL:IN) (OTC: GAILF) shares to INR245.00 from the previous INR200.00, while reaffirming a Buy rating on the stock.
The adjustment follows GAIL's report of a record gas transmission volume of approximately 124 million standard cubic meters per day (mmscmd) in the fourth quarter. The company also saw an uptick in gas marketing volumes and enhanced operating performance in its petrochemicals and LPG & OHC segments.
GAIL's consistent operational achievements and positive management guidance have contributed to Investec's ongoing positive outlook for the company.
The firm's analysts have largely maintained their earnings estimates for the financial years 2025 and 2026. The raised price target to INR245.00 is attributed to a higher valuation multiple, which reflects the improved earnings visibility for GAIL.
Investec's stance is supported by GAIL's sustained progress in core operating performance, which includes the company's recent achievements in the gas transmission sector.
The increase in gas marketing volumes and the operational improvements in other business areas have also underpinned the company's robust performance.
The analyst from Investec has underscored the significance of these developments, stating that GAIL delivered another quarter of steady operating performance. The company's record gas transmission volume and improvements across various segments have played a crucial role in the decision to raise the price target.
In conclusion, Investec maintains a Buy rating for Gail (India) Ltd., emphasizing the company's continued operational excellence and the encouraging guidance provided by its management. The new price target of INR245.00 is a reflection of the confidence in the company's future performance and earnings potential.
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