GAIL shares jump 7% today; here's what analysts have to say

GAIL (India) Ltd shares surged 6.75 per cent in Monday's trade to hit a high of Rs 186.50. The stock was last seen trading 4.49 per cent up at Rs 182.55. At this price, it has shed 4.52 per cent on a year-to-date (YTD) basis.

The scrip saw high trading volume as well on BSE today as around 6.47 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 3.92 lakh shares. Turnover on the counter came at Rs 11.85 crore, commanding a market capitalisation (m-cap) of Rs 1,20,061.32 crore.

A few analysts largely stayed positive on the counter. "GAIL and the other gas companies have all corrected because of the uncertainty on the tariff and how their Opex will be attributed. Now, there is a whole rethink on it seems that the government is going to come up with a new set of guidelines on probably raising tariffs and you know some amount of easing in Opex. These factors will provide positive momentum for the stocks but we will wait to see what the final tariffs are before we take a fundamental call," Chakri Lokapriya, Managing Partner at RedStrawBerry LLP, told Business Today.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has invited public comments on proposed amendments to natural gas tariff regulations. Based upon the inputs received, the PNGRB said its Board would conduct an open house on April 15, 2025.

"Technically, we continue to remain bullish on the counter. On the higher end, we can expect targets of Rs 195-200 levels in the near term," said Vaishali Parekh, Vice-President (Technical Research) at Prabhudas Lilladher.

GAIL traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 69.73. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 15.77 against a price-to-book (P/B) value of 1.70. Earnings per share (EPS) stood at 11.58 with a return on equity (RoE) of 10.80.

As of December 2024, the government held a 51.90 per cent stake in the PSU.