Gas Authority of India Limited (GAIL) was listed on the BSE on April 2, 1997. In the last five years, its stock has given a massive return of around 180%. Will GAIL continue to provide such great returns in the future as well? Let’s explore GAIL’s growth potential and the GAIL share price target 2025 to 2050 in this article.
About GAIL
GAIL (Gas Authority of India Limited) was established in 1984. It is a government-owned enterprise under the Ministry of Petroleum and Natural Gas. It manages the processing, travel, and distribution of Natural Gas. GAIL builds and operates pipelines that transport gas across the country, ensuring regular supplies of energy for industries, power plants, and households.
GAIL Business Model
- Natural Gas Transmission: GAIL owns and operates pipelines that carry natural gas across India.
- Natural Gas Marketing: GAIL purchases natural gas from producers and sells it to industries, power plants, and municipal gas dealers.
- Chemical companies: GAIL manufactures petrochemicals, such as polymers used in plastic manufacturing.
- LPG and Liquid The fuels: GAIL refines natural gas to produce LPG and other valuable liquids.
GAIL Fundamental Analysis
| Stock Name | Gas Authority of India Limited |
|---|---|
| NSE Symbol | GAIL |
| Market Cap | ₹ 1,25,058 Cr. |
| 52W High | ₹ 246 |
| 52W Low | ₹ 151 |
| Stock P/E | 11.8 |
| Book Value | ₹ 129 |
| Dividend Yield | 3.43 % |
| ROCE | 14.0 % |
| ROE | 13.0 % |
| Face Value | ₹ 10.0 |
| Industry PE | 14.4 |
| Price to book value | 1.47 |
| Debt to equity | 0.25 |
| PEG Ratio | 5.02 |
| Quick ratio | 0.70 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 51.91% | 51.90% | 51.88% |
| FIIs | 16.40% | 14.17% | 14.79% |
| DIIs | 17.93% | 19.56% | 19.02% |
| Government | 7.93% | 7.63% | 7.61% |
| Public | 5.83% | 6.75% | 6.68% |
| No. of Shareholders | 9,25,222 | 12,27,209 | 16,71,482 |
Key Factors Driving GAIL Future Growth
- Government Push for Natural Gas Infrastructure Expansion: The Government of India has ambitious plans to increase the share of natural gas in the country’s energy mix from around 6.3% (as of FY24) to 15% by 2030. To achieve this goal, the government is investing in infrastructure projects such as city gas distribution (CGD), liquefied natural gas (LNG) terminals, and expanding the national gas pipeline grid. GAIL, India’s largest gas transmission and marketing company, is expected to benefit significantly from this transition. The company currently operates over 16,200 kilometres of natural gas pipelines and plans to expand this network to more than 20,000 kilometres by 2026.
- Expansion of City Gas Distribution (CGD) Networks: GAIL is actively expanding CGD networks through its subsidiaries, such as GAIL Gas Ltd., as well as joint ventures. As of 2024, the Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised CGD coverage in over 600 districts across India, aiming to cover approximately 70% of the population. GAIL’s increasing presence in these urban and semi-urban markets ensures regular demand for piped natural gas (PNG) and compressed natural gas (CNG), which supports long-term revenue growth.
- Rising Demand for Cleaner Energy: With India targeting net-zero carbon emissions by 2070 and reducing dependence on coal, natural gas is emerging as a crucial transition fuel. Industries such as fertilisers, power, steel, and transport are shifting to gas-based operations. This energy transition directly supports GAIL’s core business of gas transmission and trading. In FY24, GAIL transported ~115 MMSCMD of natural gas, and demand is expected to rise steadily with policy backing and rising industrial consumption.
- Global LNG Sourcing and Diversification: To ensure a stable gas supply, GAIL has signed long-term LNG contracts with suppliers from the U.S., Qatar, and Australia. It imports about 14 million tonnes per annum (MTPA) of LNG, helping India protect against price volatility and ensuring energy security. The company is also investing in LNG shipping and regasification terminals, including stakes in Dabhol and upcoming terminals at Dhamra and Kakinada.
- New Business Verticals – Green Hydrogen, Renewables, and Petrochemicals: GAIL is diversifying into new energy verticals. It is setting up a green hydrogen plant in Madhya Pradesh (10 MW capacity), expanding its renewable energy portfolio (targeting 1 GW RE capacity by 2030), and investing in petrochemical capacity expansion. Its Pata petrochemical plant is undergoing expansion, and a new 1,500 KTPA plant is proposed in Andhra Pradesh. These efforts support long-term sustainability and revenue diversification.
Pros of GAIL
- Low P/B Ratio (Undervalued Stock): GAIL has a low Price to Book Value (P/B) ratio of 1.47, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: GAIL has a PE ratio of 11.8, which is lower than the industry average of 14.4, making it relatively undervalued and potentially a good investment opportunity.
- Low Debt Levels: With a low debt-to-equity ratio of 0.25, GAIL has a minimum dependency on debt, reducing financial risk and interest expenses.
- Attractive Valuation: GAIL stock is currently trading at a PE ratio of 11.3, indicating a fair valuation compared to its earnings.
- Increase in DIIs Holding: DIIs holding increased from 17.59% in December 2024 to 19.02% in March 2025, showing a positive outlook towards GAIL by the DIIs.
Cons of GAIL
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 14.79% in March 2025 from 16.05% in December 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
- Decreasing Profits – GAIL profits have been decreasing at a CAGR of -5%. over the last three Years.
GAIL Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Equity Capital | 6,575 | 6,575 | 6,575 |
| Reserves | 58,352 | 70,422 | 78,422 |
| Borrowings | 17,816 | 21,794 | 21,595 |
| Other Liabilities | 25,062 | 25,944 | 26,556 |
| Total Liabilities | 107,805 | 124,735 | 133,149 |
| Fixed Assets | 49,697 | 55,188 | 58,836 |
| CWIP | 16,646 | 23,627 | 27,421 |
| Investments | 17,248 | 21,910 | 22,765 |
| Other Assets | 24,214 | 24,010 | 24,128 |
| Total Assets | 107,805 | 124,735 | 133,149 |
By the end of 2025, the GAIL share price is expected to be around ₹240 in normal conditions. In a bear market, it might be ₹170, and in a bull market, it may go up to ₹300.
| GAIL Share Price Target 2025 | Rupees (₹) |
|---|---|
| Bear Market | 170 |
| Normal Market | 240 |
| Bull Market | 300 |
In 2026, the GAIL share price is expected to be around ₹300 in a normal situation. In a bear market, it might be ₹190, and in a bull market, it may cross ₹360.
| GAIL Share Price Target 2026 | Rupees (₹) |
|---|---|
| Bear Market | 190 |
| Normal Market | 300 |
| Bull Market | 360 |
According to our analysis, the GAIL share price is expected to be around ₹350 in 2027. In a bear market, it might be ₹200, and in a bull market, it may cross ₹500.
| GAIL Share Price Target 2027 | Rupees (₹) |
|---|---|
| Bear Market | 200 |
| Normal Market | 350 |
| Bull Market | 500 |
According to our analysis, the GAIL share price may trade near ₹400 by 2028; bearish conditions could pull it down to ₹230, while a strong bull run might lift it to ₹650.
| GAIL Share Price Target 2028 | Rupees (₹) |
|---|---|
| Bear Market | 230 |
| Normal Market | 400 |
| Bull Market | 650 |
In a normal situation, the GAIL share price is projected to be approximately ₹500 in 2029. In a bear market, the value may be as low as ₹250, while in a bull market, it may rise to ₹850.
| GAIL Share Price Target 2029 | Rupees (₹) |
|---|---|
| Bear Market | 250 |
| Normal Market | 500 |
| Bull Market | 850 |
In a normal situation, the GAIL share price is projected to be approximately ₹600 in 2030. In a bear market, the value may be as low as ₹280, while in a bull market, it may rise to ₹1000.
| GAIL Share Price Target 2030 | Rupees (₹) |
|---|---|
| Bear Market | 280 |
| Normal Market | 600 |
| Bull Market | 1000 |
By 2035, the GAIL share price is projected to be around ₹1250 under normal conditions. In adverse markets, the price could fall to ₹400, while favorable conditions might push it up to ₹3000.
| GAIL Share Price Target 2035 | Rupees (₹) |
|---|---|
| Bear Market | 400 |
| Normal Market | 1250 |
| Bull Market | 3000 |
Under normal conditions, the GAIL share price might hit ₹2400 by 2040. A bearish trend could lower it to ₹600, whereas a bullish surge could raise it to ₹9900.
| GAIL Share Price Target 2040 | Rupees (₹) |
|---|---|
| Bear Market | 600 |
| Normal Market | 2400 |
| Bull Market | 9900 |
In 2050, the GAIL share price is expected to be around ₹10,000 in a normal situation. In a bear market, it might be ₹2000, and in a bull market, it may go up to ₹50,000.
| GAIL Share Price Target 2050 | Rupees (₹) |
|---|---|
| Bear Market | 2000 |
| Normal Market | 10,000 |
| Bull Market | 50,000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: SAIL Share Price Target 2025 to 2050
