GAIL (India) Ltd.
ISIN: INE129A01019 • Market Cap: —
The 5-Pillar Quality Audit for GAIL (India) Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.1%), Return on Capital Employed (7.7%), and equity compounding (8.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.22 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.6%) and 3Y PAT CAGR (-5.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.45 vs PEG of — and Dividend Yield of 3.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.8%, backed by 41.7% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 11.45)
Trading at a P/E multiple of 11.45, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (41.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 41.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 7.7%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 3.6%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking GAIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 63/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare GAIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| GAIL (India) Ltd. (GAIL)Current | 63/100 | — | 11.45 | 7.7% | 0.22 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: GAIL (India) Ltd.
Q:What is the 5-Pillar Fundamental Score for GAIL (India) Ltd. (GAIL)?
GAIL (India) Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (43/100), Financial Health (81/100), Growth (28/100), Valuation (92/100), and Ownership Quality (85/100).
Q:Is GAIL fundamentally strong for long-term investment?
GAIL currently holds a moderate quality rating of 63/100. While it operates in the Oil Gas & Consumable Fuels sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does GAIL pass the Coffee Can Investing filter?
No. GAIL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GAIL compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, GAIL trades at a P/E of 11.45 and generates an ROCE of 7.7%. Compare its 5-Pillar score of 63/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.