PSU Stock to Buy: Macquarie, Citi & Morgan Stanley positive on this Maharatna stock; experts see potential upside of up to 42%

The Indian stock indices closed Wednesday’s (May 14) session on a strong note. This was supported by gains in metal, real estate, and technology shares. The Sensex was up 182 points, or 0.22 per cent, at the closing bell, settling at 81,330.56. Similarly, the Nifty ended the day at 24,666 after rising 88 points, or 0.36 per cent.

Meanwhile, brokerages suggested buying a Maharatna PSU stock. Take a look at the company’s financial results for the March quarter, share price target and other details.

PSU stock to buy

Brokerage firms Morgan Stanley, Citi, and Macquarie are positive on GAIL stock. Today, the GAIL stock closed at Rs 186 each, up 1.1 per cent from its previous close. 

Let’s see why brokerages are positive on GAIL stock

Morgan Stanley

Morgan Stanley has maintained ‘overweight’ rating on GAIL and has a target price of Rs 248. The firm says that despite high gas prices globally, India’s gas demand saw a decline of only 2 per cent, indicating that consumers are now showing more flexibility towards expensive gas. EBIT is expected to stabilise from 2026.

This means the stock has a potential upside of up to 33 per cent from its previous close.

Macquarie

Macquarie has given an ‘outperform’ rating and has a target of Rs 200 each. The report said that gas marketing margins improved in the quarter, although transmission volumes were lower than expected. But this is a temporary situation, and there is a possibility of improvement in the near future. Profits from gas marketing have compensated for the losses in the petrochemical business. This means the stock has a potential upside of up to 8 per cent from its previous close.

Citi

Citi also has a ‘buy’ rating on GAIL with a target price of Rs 265 each, which is about 42 per cent higher than the current price. The firm expects the company’s earnings to improve in the near future. This means the stock has a potential upside of up to 42 per cent from its previous close.

A look at GAIL’s Q4FY25 Earnings

State-run gas utility GAIL (India) Ltd on May 13 reported a standalone net profit of Rs 2,049 crore for Q4 FY25, down 6 per cent from Rs 2,177 crore in the same period last year. The profit miss comes despite a robust 10.4 per cent year-on-year surge in revenue from operations, which came in at Rs 35,707 crore versus Rs 32,334 crore in Q4 FY24.

The company posted an EBITDA of Rs 3,216 crore for the March quarter, registering a 13.3 per cent rise over Rs 2,838 crore last year. However, higher input costs — especially a Rs 28,944 crore outgo on stock-in-trade purchases — drove total expenses up to Rs 33,573 crore, impacting profitability. Profit before tax stood at Rs 2,701 crore. Read More