GAIL is a good bet: Sanjeev Patni

Sanjeev Patni, President and Head-Institutional Equities, Prabhudas Lilladher in a chat with ET Now gives his outlook on GAIL.

From the banking space you are particularly bullish on Axis Bank and you have also got a call on GAIL and why do you like GAIL in particular?

GAIL is actually a call on the growth that is going to be there in the company now. They are going to be doubling the transmission capacity over the next two to three years. It will essentially become almost double the company that it is right now and at this point in the cycle of India’s growth we really like the companies which are funding growth through their internal resources as well as debt.

So GAIL is actually going to be doubling the gas, the gas availability in India has improved and on the whole its going to be much faster growth going forward then it has been. The government has also approved the pricing for the new expanded pipeline that is going to be coming which is actually much better than what the pricing for earlier pipe line was and that is also going to be benefiting GAIL. So right now it looks like a good bet.