GAIL India Ltd. shares are likely to remain in focus after ICICI Securities upgraded the stock to 'Buy' from 'Add' and raised its target price to ₹215 from ₹170 following a strong Q1 FY27 performance that exceeded expectations across key segments. According to the latest brokerage report, GAIL reported adjusted Ebitda of ₹6,376 crore and adjusted net profit of ₹4,292 crore in Q1 FY27, more than doubling year-on-year and coming in well ahead of ICICI Securities' estimates. The brokerage sees nearly 19% upside potential from current levels based on the strong fundamentals. The strong performance was driven by a recovery in gas transmission volumes, record profitability in the gas trading business, and improved realisations in the petrochemical and LPG segments. Despite the ongoing US-Iran conflict blocking the Strait of Hormuz and the stoppage of LNG shipments from Qatar Energy, GAIL saw a recovery in gas transmission volumes and sharply stronger gas trading profitability for Q1, boosting earnings.
Global Health (Medanta) emerged as a standout performer in ICICI Securities' Q1 FY27 reviews, with the hospital chain posting 26.5% year-on-year revenue growth and a 26.3% rise in Ebitda. According to the brokerage report, this strong performance was driven by robust traction in its developing hospitals, particularly the Noida facility. ICICI Securities expects the Noida facility to achieve Ebitda break-even as early as the next quarter and has raised its target price to ₹1,650 from ₹1,570, while maintaining a 'Buy' rating. The brokerage sees healthy growth visibility backed by brownfield capacity additions and an ambitious greenfield expansion pipeline over the next five years.
ICICI Securities highlighted opportunities across multiple sectors in its latest Q1 FY27 reviews. The brokerage identified Star Health as a key pick in the health insurance segment, while maintaining a constructive view on Embassy Office Parks REIT in the commercial real estate leasing space. Additionally, the firm expressed optimism about Aadhar Housing Finance in the affordable housing finance sector. These recommendations reflect ICICI Securities' positive stance on themes such as health insurance, commercial real estate leasing, and affordable housing finance.
Despite steady execution and a robust order book, ICICI Securities maintained a cautious stance on RailTel Corporation in its latest Q1 FY27 reviews. According to the brokerage report, this cautious approach reflects a measured view on infrastructure sector opportunities, even as RailTel demonstrated solid operational performance during the quarter.
