Coal India, InterGlobe Aviation, GAIL, Triveni Engineering: What analysts say on these 4 stocks

Brokerages have come out with updates on a couple of stocks including Coal India, InterGlobe Aviation, GAIL and Triveni Engineering. A robust domestic demand, enhanced vision of 1 billion tonne of production and improved e-auction premium are all set to drive a strong near-term performance for Coal India. Improving international mix, on the other hand, is seen positive for InterGlobe Aviation. Recently approved tariff hike, LNG prices cooling off to $12 per mmBtu, and improvement in gas supply are seen improving GAIL's performance going forward. Analysts find Triveni Engineering ‘s valuations attractive.

Sharekhan has re-iterated a 'Buy' rating on Triveni Engineering & Industries with an unchanged target of Rs 340. Drivers are in place to deliver strong double digit earnings growth, it said, adding that the stock is attractively valued at 20.1 times FY23, 14.8 times FY24 and 11.2 times FY25E EPS. That, Sharekhan, said makes it a better pick in the sugar space.

Sharekhan said the company's  distillery business’ capacity may expand to 1,110 KLPD by end of FY24 from 660KLPD currently. Ethanol production, on the other hand, is seen increasing to 32 crore litre in FY2025 from 18 crore litre in FY2023. Power transmission business revenues are expected to grow by 25-30 per cent. Besides,

Sharekhn sees consistent improvement in the margins on back of large initiatives created by the government in the domestic market and revival of industrial cycle. Triveni Engineering & Industries' sugar crop (fewer weather vagaries), doubling of distillery capacity and strong order booking in the engineering business will help PAT grow 35 per cent over FY2023-25E, Sharekhan said.

GAIL | Motilal Oswal Securities | Buy | Target Rs 147

Motilal Oswal Securities attended GAIL’s analyst meet in Delhi on March 22. It noted that owing to supply disruptions from GMTS and record high LNG prices, performance was adversely impacted across all segments in FY23. The company’s PATA plant was operating at just 50 per cent capacity and had to shut down briefly in October 2022. Recently approved tariff hike, LNG prices cooling off to $12 per mmBtu, and improvement in gas supply should improve performance going forward, it said.

The brokerage said the decline in LNG prices is a boon for GAIL. It expects GAIL's transmission volumes to rise to 117mmscmd in FY24 from 107mmscmd in FY23. The petrochemical plant is also running at optimum utilisation currently. GAIL, it said, is currently trading at 7.1 times FY25E EPS of Rs 14.60 and 4.1 times FY25E EV/Ebitda. The domestic brokerage values the company at 9 times adjusted FY25E EPS and has added the value of investments to arrive at a target of Rs 147.

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