GAIL is still cheap: Prabhudas Lilladher
Sanjeev Patni, president and head, Institutional Equities, Prabhudas Lilladher, in a chat with ET Now talks about GAIL.
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| Sanjeev Patni, president and head, Institutional Equities, Prabhudas Lilladher, in a chat with ET Now talks about GAIL.
Talking about GAIL, given that gas tariffs are being revised higher is that the peg for an earnings revision and a fresh call on the stock?
Well that is just one part of the story the other part is actually GAIL is in fact doubling its size in the next two to three years. They are undertaking a very-very aggressive capacity expansion programme. Their transmission capacity will double over the next three years and also their petrochemical capacity is going to be doubling. So that - along with the higher prices that the regulator has just announced for the new capacities - is going to be extremely beneficial for them. We are expecting almost like 30% kind of earnings growth for GAIL going forward and it is still cheap at just about 11 times FY12. So I think the exciting growth is just the story here.
Talking about GAIL, given that gas tariffs are being revised higher is that the peg for an earnings revision and a fresh call on the stock?
Well that is just one part of the story the other part is actually GAIL is in fact doubling its size in the next two to three years. They are undertaking a very-very aggressive capacity expansion programme. Their transmission capacity will double over the next three years and also their petrochemical capacity is going to be doubling. So that - along with the higher prices that the regulator has just announced for the new capacities - is going to be extremely beneficial for them. We are expecting almost like 30% kind of earnings growth for GAIL going forward and it is still cheap at just about 11 times FY12. So I think the exciting growth is just the story here.
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