“12% hike, but 30% upside? GAIL’s stock story isn’t over yet!”

📰 GAIL News Highlights - Tariff Hike Approved: PNGRB approved a 12% hike in unified gas transmission tariffs to ₹65.7/MMBtu. - Below Expectations: The hike is lower than GAIL’s expected ₹78/MMBtu, disappointing investors. - LNG Swap Tender: GAIL issued a tender to swap two U.S.-sourced LNG cargoes for India delivery, indicating supply optimization. - Board Update: Government nominee director Kamini Chauhan Ratan resigned from GAIL’s board. 📉 Stock Impact - Stock Reaction: GAIL shares fell ~1.35% to ₹180.52 post-announcement. - Earnings Pressure: Analysts estimate a 2.5%–4.7% hit to EPS due to lower-than-expected tariff hike. - Brokerage Views: - Nomura: Maintains a positive outlook with ~30% upside potential. - Jefferies: Sees limited near-term upside due to tariff freeze till FY2028. ⚠️ Investor Watchouts - Regulatory Overhang: No further tariff revisions until FY2028 may cap earnings growth. - LNG Market Volatility: Swaps suggest GAIL is managing global LNG price and logistics risks. - Petchem Segment: Recovery in petrochemical margins could support overall profitability. - PSU Governance: Board changes are routine but worth monitoring for strategic shifts.