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Investing.com - CLSA has reiterated its Outperform rating and INR200.00 price target on Gail (India) Ltd. (NS:GAIL) despite the company reducing its gas transmission guidance.
The research firm maintained its outlook following Gail’s first-quarter fiscal year 2026 results, which showed earnings before interest and taxes (Ebit) and profit after tax (PAT) in line with CLSA’s estimates.
According to CLSA, stronger performance in gas transmission was offset by weaker results in gas trading and LPG production during the quarter.
Gail management has reduced its gas transmission guidance by 7% due to weak demand, which the company attributes to expensive spot LNG prices compared to Brent oil on an energy equivalence basis.
CLSA has trimmed its earnings per share estimates for fiscal years 2026-2027 by 2-3% but maintains its INR200 price target with an expected total shareholder return of approximately 13%, noting that an upcoming tariff hike for the gas transmission business could serve as a near-term catalyst for the stock.
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