Factors to consider before investing in GAIL shares

GAIL, a producer of natural gas, trades as a large-cap stock. On Tuesday, the government-owned corporation had a significant surge when the shares entered the ex-bonus phase before the record date. Bonus shares will be distributed to investors at a 1:2 ratio. The Gail share price rose more than 2% after riding the bulls, settling at the day’s high. After it became ex-bonus, experts are hopeful for the future of Gail shares.

The firm is valued at around Rs. 61,181.30 crore on Dalal Street.Gail will provide one new bonus share for every two existing equity shares under the bonus issue of 1:2.The Gail shares were ex-bonus on Tuesday before the record date of September 7, 2022. Investors who want to be eligible for bonus shares should pay close attention to the Ex-bonus date. 

An investor should typically purchase shares of a company’s stock at least one or two days before the ex-date to qualify for the bonus shares perks. The T+1 and T+2 settlement cycles are to blame for this.

Factors

·      A 116% rise in operating revenue to Rs. 37,572 crore in the first quarter of fiscal year 23 compared to Rs. 17,387 crore in the comparable quarter of the previous fiscal year.

·      Profit before Tax (PBT) for the Company grew by 90% to Rs. 3,894 crore in Q1 FY23 from Rs. 2,054 crores in Q1 FY22.

·      In Q1 FY23, profit after tax (PAT) increased 91% to Rs. 2,915 crore from Rs. 1,530 crore in the equivalent period of the previous fiscal year.

·      Quarterly, revenue from operations increased 39% to Rs. 37,572 crore in Q1 FY23 from Rs. 26,968 crore in Q4 FY22, profit before tax (PBT) increased 10% to Rs. 3,894 crore from Rs. 3,546 crore, and profit after tax (PAT) increased 9% to Rs. 2,915 crore from Rs. 2,683 crore. PBT in Q1 FY23 was Rs. 4,230 crore as opposed to Rs. 2,540, and PAT was Rs 3.253 crore.

·      Compared to Q4 FY22, the revenue from operations increased by 39% to Rs. 37,942 crores in Q1 FY23. PBT was Rs. 4,230 crore, up from Rs. 4,375 crore, and PAT was Rs. 3,253 crore, down from Rs. 3,454 crore.

On August 28, ICICI Direct issued a buy recommendation for Gail’s share price on reports that the business had entered negotiations to import natural gas into India through Gazprom Singapore, a division of Gazprom Germany in which the Russian Company has a share. India would gain from this since the contractual gas will be purchased cheaper than spot LNG pricing.

Why are people so confident about investing their money in GAIL?

GAIL’s share price has risen sharply in recent years, and the company now has a market capitalisation of over $50 billion. This has led some investors to ask why people are so confident about investing their money in GAIL.

GAIL, Inc. (GAIL) is a primarily shale-gas exploration and production business that appears to have found some success in recent years. The company recently saw shares surge as high as 60% on news it had increased gas flows for natural gas customers by 18%. This article will go over the fundamentals of GAIL stock and what you need to know about this fluctuating stock before investing.Select

Gas utilities like Gail India and Petronet LNG would benefit from lower gas sourcing costs as volume offtake is projected to grow for industries like CGD, fertilisers, etc.

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