Information About GAIL Ltd Share Price:

GAIL or Gas Authority of India Limited is a natural gas processing owned by the Govt of India. Besides being one of the largest gas processing companies in the country, it also operates in other segments like liquid hydrocarbon, liquefied petroleum gas, petrochemical, exploration and production, et cetera.

Company History:

In August 1984, GAIL India was incorporated as a CPSU. The company was established under the leadership of Ministry of Petroleum & Natural Gas. After establishment, at first, it was given the responsibility of constructing, operating and maintaining the iconic Hazira-Vijaipur-Jagdishpur (HVJ) pipeline. In 1991, GAIL commissioned the HVJ pipeline, which at the time, was one of the extensive cross-country natural gas pipeline projects across the globe. Furthermore, this pipeline project also marked the development of the natural gas market in India. GAIL also constructed three LPG plants and acquired pipelines to expand its distribution network in the early 90s.

The company went public in 1996 along with which gas distribution operations were commenced in New Delhi. GAIL established its exploration and production department to tap new gas reserves at the beginning of 2000. As the years passed by, an extensive network of trunk pipelines was built by the natural gas conglomerate, the total length of which is more than 10,700 kilometers. Currently, GAIL has a market share of more than 70% in gas communication and marketing.

Management of GAIL Ltd:

Mr. B. C. Tripathi - Chairman and MD

Since 1984, Mr. Tripathi has been a part of GAIL when the company was in its early stages. A graduate from NIT Allahabad in Mechanical Engineering, Mr. Tripathi started his career with the Oil and Natural Gas Corporation and associated with GAIL right from the beginning and worked in various capacities over the years in segments such as marketing, CRM, project management, et cetera. He has played a significant role in the execution of various pipeline projects of GAIL like the HVJ project, along with the Dahej-Dabhol Pipeline, the most recent venture. He has also been awarded the Silver Medal for Excellence in Project Management.

Dr. Ashutosh Karnatak - Director of Projects

Dr. Karnatak has done his B.Tech in Electrical Engineering from the HBTI, Kanpur, and M.Tech from IIT Delhi, an MBA in Finance and a Ph.D. from the University of Petroleum & Energy Studies (UPES), Dehradun. Before working as the director of projects, he served as the Executive Director (Projects) at GAIL. He has been associated with the company for more than 30 years, and during this time, he has managed several infrastructure projects for the company along with many solar energy and winds projects. He has also authored books for self-development, oil and gas sector, and project management.

Listings of GAIL in NSE, BSE, and Indices:

GAIL equity shares are available for buying and selling on NSE and BSE. The codes are mentioned below:

  1. NSE - GAILEQ
  2. BSE - 532155
  3. ISIN - INE129A01019
  4. Sector - Oil Drilling & Exploration

GAIL global depository receipts (GDRs) can be traced on the London Stock Exchange, the code for which is - GAID LI GAILY US.

Stock Trends of GAIL in 2018:

On January 1, 2018, The opening price of GAIL stock, on NSE and BSE, was Rs.502.80 and Rs.500.25 respectively. An interim dividend of 76.5% was declared in the month, followed which, the share price recovered slightly. The closing price by month end was Rs.478.30 on NSE.

The month of February faced a downward trend followed which the closing price on February 28 was Rs.457.05.

Company's Wealth and Recent Performance of GAIL Ltd:

The revenue for the December quarter from operations was increased by 17% to Rs.14,414.34 crore from Rs.12,409.65 crore in the corresponding quarter last year. At the same time, its expenses for the quarter also grew by 10%.

Considering the segment-wise split of this turnover, a significant proportion of it comes from gas marketing operations, while the remaining comes from other services like petrochemicals, natural gas transmission, and liquid hydrocarbons.

As for the PAT for the third quarter FY18, it was reported to be at Rs.1,262.22 crore, in comparison to Rs.982.92 crore in the Q3 FY17. These numbers also account for mark-to-market losses of Rs.216.29 crore.

Even though there has been an increase of 28.40% in PAT over the same quarter last year, there has been a slight decrease in the same over the September quarter. The PAT in the previous quarter was reported to be at Rs.1,309.63 crore.

Its net worth of December 31, 2017, is Rs.35,678 crore with an outstanding loan of Rs.2,491 crore.

Gas Authority of India Limited, also known as GAIL, is a state-owned natural gas processing, transmission, and marketing company in India. Its operations cover a variety of segments such as liquid hydrocarbon, LPG production, communication, and petrochemicals.

Market Capitalization:

The market cap of GAIL, as of March 2018, is more than Rs.72,000 crore.

Why Invest in GAIL?

GAIL is a state-owned natural gas processing and distribution company. It has played an instrumental role in boosting the natural gas market in India. It is a Maharatna company that is responsible for more than 50% of natural gas sold in the country. It has also established several vital pipelines over the years to enhance its gas distribution network. It is currently working on Bokaro-Dhamra pipeline and Jagdishpur-Haldia for industrial development in the belt of North Eastern region of India.

The company is reliable and has been highly consistent regarding financial performance. In the sectors of Oil, Drilling, and Exploration, GAIL is ranked second regarding market capitalization and net profit, behind ONGC. As the GOI shifts its focus to natural gas, GAIL is one of the few players that stands to benefit from it.

The company's debt-equity ratio as of Q3 FY18 is 0.07, implying that the company is in very little debt.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.