GAIL (India) Limited (NSE:GAIL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GAIL, it is a financially-sound , dividend-paying company with a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on GAIL (India) here.
Excellent balance sheet established dividend payer
In the previous year, GAIL has ramped up its bottom line by 42.3%, with its latest earnings level surpassing its average level over the last five years. Not only did GAIL outperformed its past performance, its growth also exceeded the Gas Utilities industry expansion, which generated a 32.6% earnings growth. This paints a buoyant picture for the company. With a debt-to-equity ratio of 7.7%, GAIL’s debt level is reasonable. This means that GAIL’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. GAIL seems to have put its debt to good use, generating operating cash levels of 2.72x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
GAIL’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 1.9%.
For GAIL (India), there are three essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for GAIL’s future growth? Take a look at our free research report of analyst consensus for GAIL’s outlook.
- Valuation: What is GAIL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GAIL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GAIL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.