GAIL is ICICI Direct's top ‘gladiator pick’; here's why
GAIL as its top 'gladiator' pick. The brokerage has recommended a buying range of ₹125-129 for the stock with a target of ₹146 (upside 12 percent) and a stop loss of ₹117. The time duration for the recommendation is 3 months.
The Maharatna stock has jumped 53 percent in the last 1 year and advanced over 37 percent in 2023 YTD. In the 10 months so far in the current calendar year, the stock has given positive returns in 7 and negative in only 3 - August (-3.4 percent), May (-2.3 percent) and January (-0.9 percent). Meanwhile, it has already gained over 6 percent in October so far after a strong over 8 percent rise in September.
The stock rose the most in July, up 13.4 percent. The stock rose almost 2 percent in today's deals to hit its new high of ₹132.45 on the back of heavy volumes and a strong technical outlook. It has now advanced over 57 percent from its 52-week low of ₹84.15, hit on October 20, 2022.
In the long term, 3 years, the PSU stock has given multibagger returns, surging over 136 percent in this time. Incorporated in 1984, GAIL India is a gas utility company with various business segments such as gas transmission & trading, LPG, LLH and petrochemicals. It operates a natural gas pipeline network of 14500 km.
GAIL also has a presence in the compressed natural gas (CGD) sector directly and via associate companies. ICICI Direct believes that the prospects for GAIL continue to strengthen and may drive a sustained period of outperformance over the next 2-3 years. Growing domestic gas supplies, LNG liquefaction capacity, and expectations of relatively moderate pricing of the same, normalisation of LPG prices and some likely improvement in petrochemical segment imply earnings from each key segment should steadily
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