External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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<p>Star Cement: Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However, EBITDA declined 16% YoY to INR 1.04bn due to significant cost inflation. Lower tax rate moderated APAT (at INR 853mn) decline to 1% YoY. We expect margin to expand FY22 onwards on production ramp-up. We maintain our BUY rating with a revised our target price of INR 125 (8x FY23 consolidated EBITDA). GAIL (India): Our BUY recommendation on GAIL with a price target of INR 195 is based on 9% CAGR expansion in gas transmission volume over FY21-23E to 124mmscmd on the back of (1) increase in domestic gas production, (2) increase in demand of RLNG, and (3) completion of major pipelines in the eastern and southern parts of India.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Star Cement: Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However, EBITDA declined 16% YoY to INR 1.04bn due to significant cost inflation. Lower tax rate moderated APAT (at INR 853mn) decline to 1% YoY. We expect margin to expand FY22 onwards on production ramp-up. We maintain our BUY rating with a revised our target price of INR 125 (8x FY23 consolidated EBITDA). GAIL (India): Our BUY recommendation on GAIL with a price target of INR 195 is based on 9% CAGR expansion in gas transmission volume over FY21-23E to 124mmscmd on the back of (1) increase in domestic gas production, (2) increase in demand of RLNG, and (3) completion of major pipelines in the eastern and southern parts of India.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HSIE Results Daily: GAIL (India), Star Cement

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

<p>Brent at USD69/bbl (May'21 average) has raised the price of oil-linked LNG to ~USD9/mmBtu (13% slope), similar to that of current spot LNG prices (which are also at ~USD9-10/mmBtu for July delivery). These make the pricing for US HH contracts favorable for GAIL. At the end of Dec'21, GAIL had started supplying gas (~2.3mmscmd totally) to various fertilizer plants ~0.8mmscmd to Mangalore Chemicals &amp; Fertilizers, ~1mmscmd to the Ramagundam plant, and ~0.5mmscmd to the Gorakhpur plant.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Brent at USD69/bbl (May'21 average) has raised the price of oil-linked LNG to ~USD9/mmBtu (13% slope), similar to that of current spot LNG prices (which are also at ~USD9-10/mmBtu for July delivery). These make the pricing for US HH contracts favorable for GAIL. At the end of Dec'21, GAIL had started supplying gas (~2.3mmscmd totally) to various fertilizer plants ~0.8mmscmd to Mangalore Chemicals &amp; Fertilizers, ~1mmscmd to the Ramagundam plant, and ~0.5mmscmd to the Gorakhpur plant.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Improving macros supportive: Upgrading multiple

India

GAIL India Limited processes and distributes natural gas and liquefied petroleum gas. The Company is a Government of India undertaking.

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Gail India (GAIL IN)

HSIE Results Daily: GAIL (India), Star Cement

Star Cement: Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However,...

HDFC Securities

Improving macros supportive: Upgrading multiple

Brent at USD69/bbl (May'21 average) has raised the price of oil-linked LNG to ~USD9/mmBtu (13% slope), similar to that of current spot LNG prices...

Motilal Oswal

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