Buy GAIL (India) Ltd. target Rs 505 : ICICI Securities
Buy GAIL (India) Ltd. at a price target of Rs 505. GAIL's transmission volumes are expected to increase at 9.4 per cent CAGR over FY16-19E to 121 mmscmd in FY19E.
By ETMarkets.com | Updated:
ICICI Securities has a buy call on GAIL (India) Ltd. with a target price of Rs 505 .The current market price of GAIL (India) Ltd. is Rs 442.45 Time period given by analyst is Long Term when GAIL (India) Ltd. price can reach defined target.
GAIL's transmission volumes are expected to increase at 9.4 per cent CAGR over FY16-19E to 121 mmscmd in FY19E, due to incremental LNG capacity coming on stream and higher demand for contracted LNG, on account of RasGas Petronet deal leading to lower long-term LNG prices.
"We expect GAIL's profit to increase at 24.6 per cent CAGR over FY16-19E to Rs 4,441.30 crore in FY19E," it said. Stable gas transmission and trading business, turnaround in the petchem operations and increasing CGD business make GAIL a preferred choice from a long-term investment perspective.
GAIL's transmission volumes are expected to increase at 9.4 per cent CAGR over FY16-19E to 121 mmscmd in FY19E, due to incremental LNG capacity coming on stream and higher demand for contracted LNG, on account of RasGas Petronet deal leading to lower long-term LNG prices.
"We expect GAIL's profit to increase at 24.6 per cent CAGR over FY16-19E to Rs 4,441.30 crore in FY19E," it said. Stable gas transmission and trading business, turnaround in the petchem operations and increasing CGD business make GAIL a preferred choice from a long-term investment perspective.
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