India's GAIL rises after quarterly profit more than doubles

GAIL (India)

Mon 05:07

** Shares of GAIL (India) GAIL.NS up 3.2% at 173.2 rupees
** The state-owned gas distributor posts more-than-two-fold jump in quarterly profit to 46.5 billion rupees ($490.22 million)
** Systematix ("Buy"; PT: 200 rupees) says company delivered strong operational second-quarter performance, with robust revenue growth and sustained profitability, primarily driven by a sharp recovery in gas marketing/transmission and an improvement in petrochemical contribution 
** Brokerage raises EBITDA estimates by 47% for FY27E and 26% for GY28E
** Jefferies ("Hold"; PT: 185 rupees) says company's EBITDA was a sharp beat, driven by stronger gas transmission, and very elevated gas trading profits
** Gas transmission volumes were near life-highs, suggesting resilient demand despite high prices: brokerage
** PhillipCapital (upgrades from "neutral" to "buy"; rasies PT to 205 rupees from 185 rupees) says second-quarter adjusted profit was above its estimates; believes company offers multiple long-term growth drivers
** YTD, GAIL stock up ~1%

($1 = 94.8550 Indian rupees)


 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))