Share buyback, interim dividend plans boost investor sentiment for Gail

MUMBAI: Shares of Gail (India) Ltd rose over 5% on Tuesday to touch a fresh 52-week high, boosted by reports of share buyback and interim dividend which the board will consider in a meeting scheduled for 15 January.

These developments come amid much improved business prospects too. Rising crude oil prices bode well for earnings of upstream oil and gas companies such as Gail. Coming out of the lockdown, the company has witnessed a steady rebound in gas transmission and distribution volumes which are now back at pre-pandmeic levels, as per analysts.

Better demand bodes well for its gas marketing segment as well. Spot gas prices have been rising and should improve the placement of higher-priced take-or-pay imported gas contracts.