GAIL: Full Form, History, Latest Financials & Samco Star Ratings

What is the Full Form of GAIL? – GAIL Full Form

The GAIL full form is Gas Authority of India Ltd. It operates a network of 13,340 kms across India (as of 10th September 2021). GAIL dominates 70% of India’s gas transmission market and 50% gas trading share. GAIL also has a presence in the following segments:
  • Trading
  • Transmission
  • Liquified Petroleum Gas (LPG) production and transmission
  • Liquified Natural Gas (LNG) re-gasification
  • Petrochemicals
  • City gas, exploration & production, and other areas of the natural gas value chain.
gail-full-form

History of GAIL 

history of gail

GAIL’s LOGO

gail logo

Key Personnel at GAIL

  • Shri Anjani Kumar Tiwari. Director (Finance)
  • Shri Manoj Jain- CMD, Director (Projects) and Director (HR)
  • Shri E.S. Ranganathan-Director (Marketing)
  • Shri M V Iyer-Director (Business Development)
  • Shri Ashish Chatterjee-Government Nominee Director.
  • Smt. Usha Suresh-Government Nominee Director.
  • Smt. Banto Devi Kataria- Non-official (independent) director
  • Smt. Shubha Naresh Bhambhani- Chief Vigilance Officer, GAIL
  • Shri A.K. Jha- Company secretary

Subsidiaries of GAIL

  • Brahmaputra Cracker and Polymer Limited (BCPL)
  • GAIL Gas Limited
  • GAIL Global (Singapore) Pte Limited
  • GAIL GLOBAL (USA) INC., (GGUI)
  • GAIL GLOBAL USA LNG LLC (GGULL)
  • Konkan LNG Limited (KLL)

Joint Ventures of GAIL 

  • Aavantika Gas Limited (AGL)
  • Bhagyanagar Gas Limited (BGL)
  • China Gas Holdings Limited (China Gas)
  • Central U.P. Gas Limited (CUGL)
  • Fayum Gas Company (Fayum Gas)
  • Green Gas Limited (GGL)
  • Indraprastha Gas Limited (IGL)
  • Mahanagar Gas Limited (MGL)
  • Maharashtra Natural Gas Limited (MNGL)
  • National Gas Company (Natgas)
  • ONGC Petro-additions Limited (OPaL)
  • Petronet LNG Limited (PLL)
  • South-East Asia Gas Pipeline Company Limited (SEAGP)
  • TAPI Pipeline Company Limited (TPCL)
  • Tripura Natural Gas Company Limited (TNGCL)
  • Talcher Fertilizers Limited
  • Vadodara Gas Limited (VGL)

Latest Shareholding Pattern of GAIL (As on 10th September 2021)

Mar 2018 Mar 2019 Mar 2020 Mar 2021
Promoters 53.96% 52.64% 52.06% 51.82%
Foreign Institutional Investors (FIIs) 17.41% 20.86% 16.3% 15.63%
Domestic Institutional Investors (DIIs) 16.24% 14.65% 18.31% 19.32%
Government 7.43% 8.13% 8.31% 8.47%
Public 4.97% 3.72% 5.02% 4.76%

Latest Profit and Loss Account of GAIL (As on 10th September 2021)

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
Sales 52,053 48,552 54,496 76,190 72,508 57,372
Expenses 47,524 42,537 46,701 66,283 63,495 50,127
Operating Profit 4,529 6,015 7,796 9,907 9,013 7,245
OPM 9 12 14 13 12 13
Other Income 737 1218 954 1751 3,805 2,834
Interest 822 509 295 159 309 179
Depreciation 1496 1541 1,527 1,667 2,080 2,179
Profit before tax 2,949 5,183 6,928 9,831 10,429 7,725
Tax 37 35 31 33 9 20
Net Profit 1,869 3,368 4,799 6,546 9,422 6,136
              *(Figures in Rs. crores)
[Read MoreHow to Read an Income Statement of a Company]

Latest  Key Financial Ratios of GAIL (As on 10th September 2021)

Market Cap (Cr): 64,452 Face Value (₹): 10 EPS (₹): 17.06
Book Value (₹): 120 Roce (%): 13.5 Debt to Equity: 0.16
Stock P/E: 8.46 ROE (%): 12 Dividend Yield (%): 3.44
Revenue (Cr): 61,776 Earnings (Cr): 7,130 Cash (Cr): 2,025
Total Debt (Cr): 7,873 Promoter’s Holdings (%): 52.12

Latest Balance Sheet of GAIL (As on 10th September 2021)

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Share Capital 1,268 1,691 2,255 2,255 4,510 4,440
Reserves 35,135 37,614 39,424 43,749 44,758 48,742
Borrowings 9,052 6,553 3,876 2,224 6,912 7,873
Other Liabilities 13,608 12,433 15,798 20,199 18,754 20,350
Total Liabilities 59,063 58,291 61,353 68,426 74,934 81,405
Fixed Assets 29,946 28,302 28,860 31,475 37,121 40,188
Cwip 3,688 4,126 5,938 9,738 11,666 13,400
Investments 9,844 10,125 10,452 10,722 9,893 13,058
Other Assets 15,584 15,737 16,102 16,493 16,253 14,760
Total Assets 59,063 58,291 61,353 68,426 74,934 81,405
Inventories 1,643 1,728 1,951 2,522 3,203 3,010
Trade Receivables 2,723 2,751 3,430 4,363 4,818 3,502
Cash & Bank 1,846 1,421 2,859 1,425 1,250 2,025
Loans and Advances 4,545 4,452 2,974 3,061 3,201 1,883
Trade Payables 2,909 2,741 3,904 3,876 3,922 4,453
                *(Figures in Rs. crores)
[Read More: How to Read a Balance Sheet of a Company]

Latest Mutual Funds Holdings & Trends of GAIL 

Schemes Quantity As on
HDFC BALANCE ADVANTAGE FUND – REGULAR PLAN – GROWTH 58,523 31-08-2021
SBI FLEXICAP FUND – GROWTH 31,884 31-08-2021
HDFC FLEXICAP FUND – GROWTH OPTION 22,503 31-08-2021
HDFC TOP 100 FUND – REGULAR PLAN – GROWTH 20,052 31-08-2021
FRANKLIN INDIA FOCUSED EQUITY FUND-GROWTH 18,269 31-08-2021
KOTAK EQUITY ARBITRAGE FUND – REGULAR PLAN – GROWTH 18,054 31-08-2021
FRANKLIN INDIA BLUECHIP FUND – GROWTH 17,538 31-08-2021
DSP TAX SAVER FUND – GROWTH 13,369 31-08-2021
FRANKLIN INDIA FLEXI CAP FUND – GROWTH 13,154 31-08-2021
SBI BALANCED ADVANTAGE FUND – REGULAR PLAN – GROWTH 11,729 31-08-2021

Valuation Analysis of GAIL (As on 10th September 2021)

Valuation analysis helps you analyse how overvalued or undervalued a stock is using the margin of safety index. Watch this video to know how to find undervalued stocks in the market.  It is the difference between the intrinsic value and the current value of a share. Intrinsic value is the true value of a share.

From the investor’s perspective –

If the market price is significantly lower than the stock’s intrinsic value, the stock has a high margin of safety. It is a buy signal.

From a seller’s point of view –

If the market price is significantly higher than the intrinsic value, it is a short sell opportunity. GAIL has a high margin of safety gail samco

Latest Samco Stock Ratings of GAIL : 2 out of 5 Stars (As on 10th September 2021)

PROS
  • Great Cash Conversion of Profits: GAIL is able to convert 89.23% of operating earnings into operating cash flow. This signals a great working capital cycle and large cash flows for either funding or dividends. This has a positive impact on GAIL’s shareholders.
CONS
  • Low Sustainable RoE: GAIL’s return on equity (ROE) is lower than the expected cost of capital. This means that the underlying business will destruct value over a period of time due to its inability to generate superior returns on capital.
  • Low Return on Capital Employed: GAIL is unable to generate sufficient return on capital employed. This has affected its ability to generate high returns for shareholders after accounting for taxes, interest and other non-equity stakeholders.
  • Highly Cyclical Industry: GAIL operates an extremely cyclical business with unpredictable earnings and cash flows. This can result in very high stock price volatility and returns which could negatively impact shareholder returns.
  • Capital Intensive Business: GAIL operates an extremely capital intensive business with a low Asset turnover ratio of 1.11. A low asset turnover ratio negatively impacts RoE and reduces shareholder returns. Also due to the capital intensive nature of business, growth of the business would need to be funded either via increasing borrowings or diluting shareholding, both of which negatively impacts shareholder value and returns.
  • Extremely Speculative Stock: GAIL’s stock is extremely speculative in nature which is likely to work negatively to impact long term shareholders of the company.
  • Low Shareholder Pedigree: GAIL has a very poor long term shareholder base and a large part of the shareholders are short term shareholders. This increases stock volatility and high speculative activity works negatively for long term shareholders of the company.

Competitor Analysis of GAIL (As on 10th September 2021)

Company Price (Rs) Market Cap (Cr) P/E EPS (Rs) Dividend Yield (%) ROE (%)
A2Z INFRA ENGINEERING LIMITED 4.35 76.6 0 -4.06 0 -21.80%
Indraprastha Gas Ltd 564.3 39,501 27.9 20.21 0.02 19.80%
Va Tech Wabag Ltd 335.5 2,086 17.4 19.33 0 8.52%
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