GAIL (India) (GAIL)

FairStock Score: 84/100 — HIGH CONVICTION

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach GAIL as a Graham-style bargain with a Buffett quality check. At ₹174.90, GAIL trades at P/E 11.64 and P/B 1.29, with book value ₹135.55. The Graham Number ₹194.53 gives a 12.85% margin of safety. Dividend yield 3.14%, promoter holding 51.88%, and market cap ₹1.15 lakh Cr give it the feel of a large, income-oriented utility. On moat, I do not see a wide one in these metrics. ROE 10.11% and ROCE 14.05% are respectable but not franchise-level. The gas transmission/marketing business may have scale advantages, but the figures alone do not prove pricing power. The balance sheet is a plus: Debt/Equity 0.28 and Free Cash Flow ₹9,112 Cr. Growth is solid: 5yr revenue CAGR 14.37%, sales growth 16.70%, latest quarter sales ₹35,173 Cr and net profit ₹1,729 Cr. Profit growth 97.20% is eye-catching but unlikely to repeat at that pace; I would treat it as cyclical or one-off until proven. Valuation is split. P/E 11.64 and Graham Number say cheap. But EV/EBITDA 112.69 looks extreme, and DCF intrinsic value ₹39.13 is far below the market price. Altman Z-Score 2.53 and Piotroski F-Score 6/9 say health is acceptable, not fortress-like. FairStock Score 84/100 is comforting, but I remain skeptical. GAIL could be a Stalwart with income and moderate growth, but the DCF/EV contradiction demands a margin of safety. At this price, I would watch, not back the truck up.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer