GAIL Company Analysis

Company Profile:  State Run Natural Gas marketing and transmission company. Incorporated in 1984 Headquarters in Delhi. The company is specialist in marketing and distribution of Gas, LPG and setting up a Network of pipeline to sell LPG to commercial, household customers. With LPG and natural gas, the company also selling petrochemical like Butane, Ethylene Propane. The company also selling Naptha to Electicity Generation companies for their plants.

The company is also operating in China, Singapore, USA through its subsidiaries.

Share Holding Pattern

Financials and Ratio

 2010-112011-122012-132013-142014-15 2015-16
Revenue 32977.2240829.8340287.2058406.4357602.8452771.85
Net Profit 3561.133653.844022.24375.273039.172298.9
NPM 10.949.3498.785.354.42
EPS28.0728.8031.7134.4923.9618.12
Book Value 151.78170.48. 191213.42229.56241.11
Dividend Pay out 26.7130.2030.2730.1525.0430.34
Dividend per Share 7.58.79.610.465.5
ROE 18.4916.8916.616.1610.437.51
ROCE 15.3712.6411.2610.847.085.45
ROA 11.129.3498.785.744.33
Debt to Equity 0.10.230.350.350.280.19
Asset Turnover101.64103.36106.35115.45107.2797.96

Future Prospects :  As the company is marketing and distribution company, it is not Good for it if prices of Natural gas are going up. Though now there is no burden on the company for subsidy.

It is expected that demand for LPG and piped gas will be high due to change in lifestyle which is helpful thing for the company. The price of Gas is also now market linked. Though Ratio of company is not looking good as the increasing price of Crude is making pressure. Govt initiative to explore oil and natural gas in country itself will be game changer.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter