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GAIL (India) Limited (GAIL) Fair Value & Analysis

Utilities · IN · Market cap ₹1.1T

GI GAIL (India) Limited GAIL · NSE
Price₹176.40
Fair Value₹147.74
Upside-16.3%
Quality56/100
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Mixed Growth
Thin margins · 5.4% net margin
Low debt · generates free cash flow
3.21% dividend yield
Ranks above peers (9/14)
Narrow moat 38/100
Evidence: High Range ₹120.21 – ₹245.06 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ₹147.58 to ₹147.74 (+0.1%) since Jun 24, 2026. Share price +1.4% over the past month.

A solid business, but screening 16% overvalued on our models.

What matters now

  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹120.21 to ₹245.06) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹223.88 ₹67.78 Fair Value ₹147.74 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹67.78 – ₹223.88 · fair‑value band ₹120.21 – ₹245.06 · the ₹176.40 price screens above the ₹147.74 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

GAIL (India) Limited (GAIL) currently trades at ₹176.40, while our model-based Fair Value estimate is ₹147.74, implying the stock looks roughly 16.3% overvalued today. We read business quality at 56/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, GAIL (India) Limited generated revenue of ₹1.4T at a net margin of 5.4%. Revenue declined 2.4% year over year. It earns a return on equity of 8.7%. Net debt stands at ₹239B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹120.21 (bear case) to ₹245.06 (bull case); at ₹176.40, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 31% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -23% fair-value upside, at -16%, GAIL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹29.45 ₹65.37 ₹128.27 80
Residual Income ₹116.69 ₹127.11 ₹166.99 76
Rev-Margin DCF ₹67.21 ₹138.25 ₹226.48 74
All 26 models by family
DCF Models
FCF DCF ₹29.25 ₹66.52 ₹131.65 38
Owner Earnings ₹32.60 ₹72.45 ₹142.09 31
5Y Revenue Exit ₹67.21 ₹140.79 ₹240.57 39
5Y EBITDA Exit ₹102.76 ₹211.84 ₹347.57 41
5Y P/E Exit ₹104.20 ₹214.72 ₹339.22 38
10Y Revenue Exit ₹50.64 ₹117.10 ₹217.99 36
10Y EBITDA Exit ₹78.11 ₹169.44 ₹306.94 37
10Y P/E Exit ₹79.07 ₹171.56 ₹300.01 35
Earnings-Based
Graham-Dodd ₹78.42 ₹324.52 ₹442.26 54
Lynch FV ₹81.86 ₹116.94 ₹152.02 50
PEG = 1.0 ₹81.86 ₹116.94 ₹152.02 46
EPV ₹64.86 ₹79.70 ₹92.90 59
Dividend Discount
Gordon GGM ₹57.71 ₹125.98 ₹211.97 70
DDM Multi-Stage ₹57.71 ₹103.20 ₹131.29 61
Multiples
P/E Multiple ₹172.98 ₹230.64 ₹288.30 63
P/S Multiple ₹147.03 ₹196.05 ₹245.06 58
P/B Multiple ₹147.03 ₹196.05 ₹245.06 55
EV/EBIT ₹138.32 ₹190.84 ₹243.37 53
EV/EBITDA ₹151.41 ₹208.31 ₹265.20 54
EV/Revenue ₹86.96 ₹132.48 ₹178.00 43
Asset-Based
NCAV (Graham) ₹67.72 ₹90.74 ₹135.44 50
Growth DCF
Growth DCF ₹29.45 ₹65.37 ₹128.27 80
Rev-Margin DCF ₹67.21 ₹138.25 ₹226.48 74
Economic Profit
Residual Income ₹116.69 ₹127.11 ₹166.99 76
ROIC Compounder ₹64.86 ₹79.70 ₹92.90 72
Growth Earnings
Growth-Adj P/E ₹136.61 ₹195.16 ₹253.71 68

Widest divergence: Multiples (₹196.05) versus Growth DCF (₹65.37). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹1.4T
Revenue growth (YoY) -2.4%
Net margin 5.4%
Return on equity 8.7%
Free cash flow ₹24.4B FY2026
P/E ratio 15.0
More key figures
Operating margin 2.8%
EPS (TTM) ₹11.53
Dividend yield 3.2%
EPS growth (YoY) -40.3%
Net debt ₹239B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 52 · Market factors (momentum, volatility) 63

Profitability 44
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 31
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 62
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments.

Full company description

GAIL (India) Limited operates as a natural gas processing and distribution company in India and internationally. It operates through Transmission Services, Natural Gas Marketing, Petrochemicals, LPG and Other Liquid Hydrocarbons, and Other segments. The company is involved in the transmission and marketing of natural gas through pipelines to the power, fertilizer, industrial, automotive, petrochemical, domestic, and commercial sectors; exploration and production activities; and marketing of compressed biogas, city gas, and biofuels. It also produces and markets liquefied petroleum gas (LPG), propane, pentane, naphtha, mixed fuel oil, ethylene, propylene, and polypropylene; and manufactures petrochemicals, such as high-density and linear low-density polyethylene under the G-Lex and G-Lene brands. In addition, the company generates wind and solar power. GAIL (India) Limited was incorporated in 1984 and is based in New Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

GAIL (India) Limited reported revenue of ₹1.4T in FY2026 versus ₹928B in FY2022, a compound +11.2%/yr. Reported net income was ₹75.8B in FY2026, compounding −11.3%/yr from FY2022.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹1.4T
Latest YoY
−0.2%
Avg. growth/yr (3Y)
−0.9%
Avg. growth/yr (5Y)
+19.8%
Avg. growth/yr (21Y)
+12.3%
Revenue +11.2%/yr
FY22 ₹928B
FY23 ₹1.5T
FY24 ₹1.3T
FY25 ₹1.4T
FY26 ₹1.4T
Net income −11.3%/yr
FY22 ₹123B
FY23 ₹56.2B
FY24 ₹99.0B
FY25 ₹124B
FY26 ₹75.8B

GAIL screens 16% overvalued. Compare with Naturgy Energy Group →

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Cite: Fair Value Calculator (2026). "GAIL (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/GAIL

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Regulated Gas · 103 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Top 25%
Fair Value upside −16% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 3% · Bottom 25%
Revenue growth -2% · Above median
Dividend yield (TTM) 3.2% · Below median
Debt / equity 0.15× · Lower than median

Valuation Multiples vs Utilities - Regulated Gas median · lower = cheaper

P/E (TTM) 15.0× · Cheaper than median
P/B 1.28× · Cheaper than median
P/S (TTM) 0.80× · Cheaper than median
P/FCF 0.5× · Cheaper than median
EV/EBITDA 11.0× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 12 · sector 24
FUTURE 0 · sector 0
PAST 35 · sector 34
HEALTH 92 · sector 84
DIVIDEND 64 · sector 68

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Gas stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Naturgy Energy Group NTGY €28.84 €35.80 +24%
Atmos Energy Corporation ATO $177.68 $85.67 -52%
NiSource Inc NI $47.07 $28.59 -39%
Uniper SE UN0 €42.80 €49.13 +15%
The Hong Kong and China Gas Company 0003 HK$7.03 HK$5.08 -28%
Italgas S.p.A IG €9.98 €8.11 -19%
ENN Natural Gas Co 600803 ¥16.69 ¥25.71 +54%
Adani Total Gas Limited ATGL ₹723.90 ₹101.36 -86%
UGI Corporation UGI $35.84 $27.13 -24%
Southwest Gas Holdings SWX $92.06 $70.67 -23%

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Frequently asked questions

Is GAIL (India) Limited (GAIL) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹147.74 versus a price of ₹176.40, about −16% (overvalued).
What is the fair value of GAIL?
Our model-based fair value for GAIL (India) Limited is ₹147.74 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹176.40.
What is the quality score of GAIL?
GAIL (India) Limited has a Quality Score of 56/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of GAIL (India) Limited (GAIL)?
GAIL (India) Limited reported trailing-twelve-month revenue of about ₹1.4T (latest available figure, as of Jul 16, 2026).
What is the net profit margin of GAIL?
The net profit margin of GAIL (India) Limited is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does GAIL (India) Limited pay a dividend?
GAIL (India) Limited currently shows a dividend yield of about 3.28% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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