Government energy company GAIL is in focus today. The company had released the results of the second quarter of the financial year 2025 a day earlier, after which action is being seen in this stock today. During early trading on Wednesday, this stock was seen trading with a gain of about 6%. This is the fastest stock in futures. The results of this government company during the July-September quarter were weaker than expected. However, the profit was more than expected.

This rise in the company's profits has been seen amid a decline in the marketing margins of the gas transmission business and petrochemical business. Despite weaker-than-expected results in the second quarter, brokerage firms are looking bullish on this stock. In fact, this view of the brokerage is bullish amid the company's plan to expand the new pipeline.

Global brokerage firm Jefferies said it has upgraded the rating on GAIL to Buy with a target price of ₹ 240 per share. This stock is expected to rise by about 22% as compared to Tuesday's closing price. The brokerage firm said that the company's EBITDA is up 7% year-on-year, which is slightly weaker than analyst estimates. The company's market share is growing due to the new pipeline. The company is preparing to start more pipelines by mid-2025. Jefferies said in its estimate that GAIL's EBITDA will grow at 9% CAGR during the financial year 2024-27. Also, after a 20% correction from the recent peak, the risk reward of this stock has become reasonable. Another global brokerage firm Moran Stanley has an overweight rating on GAIL with a price of ₹ 258 per share. The stock is expected to rise by 31% from Tuesday's closing price. Analysts of this brokerage firm said that the RoE of gas pipes is 19%. Volume growth is also being seen due to new pipeline network expansion. The brokerage firm sees several triggers for re-rating the stock. During July-September, the company's profit increased by 9.41% year-on-year to ₹ 2672 crore. In the same quarter of the previous financial year, this figure was at ₹ 2,442.18 crore. In the CNBC-TV18 poll, it was estimated to be ₹ 2,591 crore. Talking about income, it has also reached ₹ 32,912 crores with a growth of 3% on an annual basis. EBITDA also increased by 7% to ₹ 3744 crores. Margin was 11.37% as against 10.97%. During the last one month, GAIL's stock saw a decline of 12%. However, in the last one year, this stock has seen a growth of 60%. Whereas, during this period, Nifty has seen a growth of only about 25%.