Buy GAIL; target of Rs 200: Motilal Oswal

What happened

Motilal Oswal reiterated its Buy rating on GAIL and set a target price of Rs 200. It reported that GAIL’s standalone EBITDA, a measure of operating earnings, was INR64.1b in 2QFY27, 36% above the broker’s estimate, mainly on stronger natural gas trading and LPG and liquid hydrocarbon performance.

Confirmed

Global impact / market context

Stronger trading and LPG-related results lifted reported operating earnings above Motilal Oswal’s forecast, while gas transmission matched its estimate and petrochemicals recorded a smaller operating loss than expected. If these segment trends continue, they could shape GAIL’s earnings and the broker’s expected profit growth.

Analyst inference

Motilal Oswal’s report offers an analyst forecast rather than a guaranteed company outcome. Its 24% annual profit growth estimate depends on future results, while its Rs 200 target depends on valuation assumptions; neither establishes that GAIL’s earnings or share value will reach those levels.

Analyst inference

What to watch

1. Check future results for natural gas trading and LPG and liquid hydrocarbon performance, which the report identified as key contributors to the earnings beat. Analyst inference
2. Track whether gas transmission earnings remain near estimates and whether the petrochemicals operating loss stays below expectations in later reporting periods. Analyst inference
3. Compare reported profit with Motilal Oswal’s forecast of 24% annual growth over the forecast period; the article does not specify the drivers behind that projection. Analyst inference

Evidence

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