Hardic Agree, Your smart calculations on Green hydrogen revenue from GAIL may be correct…But Green Hydrogen is its new business vertical which they have just started. we can not compare revenue from hydrogen vs revenue from other business verticals nor its Green hydrogen retailing could replace it’s 10 business verticals.Moreover, apart from selling green Hydrogen, a series of value added products can be made starting from green hydrogen ( it already has a full fledged pet chemical business). e.g. making Green Ammonia from Green hydrogen has got a vast potential and a series of many other value added chemicals can be made as discussed in the thread previously.
Whether we call it market euphoria or market intelligence, the stock which was lying dormant has already given 90% return during the last 1 year. It is not without a reason. The last 3-4 quarters performance indicate the future growth potential – if India has to grow economically , energy requirement increases. No wonder , the MF’s have increased their holdings.
Though this thread is a Green Hydrogen thread and not a GAIl thread , I thought it may be relevant to put it here as it deals with green hydrogen – May be we can create a separate thread on GAIL and move the contents to that thread at a later date.
GAIl has already Some 10 existing business verticals…Natural Gas transmission (16000 kms , 70% market share) Gas trading & marketing (50% market share), and a dominant position in direct CGD and through its subsidiary / jt ventures Such as IGL, MGL. Apart from Natural gas transmission & distribution, other verticals are LPG transmission , LNG transmission, RLNG, PNG, Liquid hydrocarbon, Pet chemicals, E & P.
However, there are two major challenges which the company is trying to navigate- (1) We import 80% of our crude oil and 50% of our Natural gas / CNG / LNG …so always carry Geo-political risks and volatile pricing international market. So how would it fit in to our Govt’s Atma Nirbhar Bharat?
(2) Decarbonisation- How does it fit in to the Goal which is of Global nature, though Natural gas methane with only one carbon atom has 16 times less carbon than diesel and 8 times less than petrol.
To meet this dual challenge , the company has started a series of initiatives.
The recent additions to its business verticals during the last 3-4 yrs are Renewable energy such as Solar, wind , Bio Gas from municipality waste , cow dung etc.
you may please visit the link below to see an update on all its business verticals. To see it’s BCG initiatives and how they have linked successfully with CGD , please click right side top menu and then business verticals and then click BCG.
You may please go through the Comprehensive stock analysis by icici securities post q3 results in Adobe Acrobate link below and a latest update.
Further the latest additions in 2024 are (1) Green hydrogen (2) SSLNG – the Next Big Wave (3) Coal to Syn Gas with CCUS & Coal to hydrogen and coal to methane and a series of chemicals thereafter in its pet chemical division- This project is a Dark Horse.
Most analyst below are not factoring the potential revenue growth from the above 3 new proposed business verticals…
So how a natural Gas company with
10 business verticals- all carbon based is trying to decarbonise and become atma nirbhar Bharat… It Is very difficult to replicate GAIL’s business model by anyone.
.the story is only beginning to unfold.
Discl : Invested from.lower level. Not a buy or sell recommendation. PSU stocks carry inherent risk of frequent policy changes.
please do your own assessment before investing.
| Subscribe To Our Free Newsletter |
