20% upside likely in GAIL: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan, in a chat with ET Now talks about GAIL.

Talking about Gas Authority of India, where is the edge in buying the stock? How much of a price upside is there given the fact that all the institutional guys covers this like a hawk?

We feel that there is a case for a 20% upside in GAIL primarily because of the new LNG gas networks which are coming up. GAIL is going to link up those networks with their existing pipeline. So we think that the overall volume growth there is going to be pretty strong.

In the petrochemical space, again, we are looking at a strong growth of about 15% to 18%. When the entire market has run up, what people are looking out for is a very stable company where there is a good revenue visibility and management comfort. So from that perspective we think that GAIL fits the bill and there is a case for about 20% upside to this stock from current levels.