ICICI Securities maintains 'buy' on GAIL
ICICI Securities (I-Sec) has maintained its ‘buy’ rating on GAIL and marginally raised the company’s fair value to Rs 234/share due to lower subsidy burden in the current quarter.
GAIL
CMP: Rs 199.90
Target price: Rs 234
ICICI Securities (I-Sec) has maintained its ���buy��� rating on GAIL and marginally raised the company���s fair value to Rs 234/share due to lower subsidy burden in the current quarter. However, the brokerage has cautioned that the stock would continue to be impacted by near-term concerns on falling petrochem margins and lower tariffs from the Hazira-Vijaipur-Jagdishpur (HVJ) gas pipeline.
���Going forward, GAIL is likely to benefit from NGG (national gas grid) expansion and improved visibility on gas supply. The company plans to double its gas transmission capacity through Rs 28,000-crore capex in two phases, to be completed by FY12 (estimated). This will lead to GAIL registering gas transmission EBITDA of four times in the next seven years, thereby increasing share of its annuity earnings as well improving risk profile,��� an I-Sec note to clients said.
CMP: Rs 199.90
Target price: Rs 234
ICICI Securities (I-Sec) has maintained its ���buy��� rating on GAIL and marginally raised the company���s fair value to Rs 234/share due to lower subsidy burden in the current quarter. However, the brokerage has cautioned that the stock would continue to be impacted by near-term concerns on falling petrochem margins and lower tariffs from the Hazira-Vijaipur-Jagdishpur (HVJ) gas pipeline.
���Going forward, GAIL is likely to benefit from NGG (national gas grid) expansion and improved visibility on gas supply. The company plans to double its gas transmission capacity through Rs 28,000-crore capex in two phases, to be completed by FY12 (estimated). This will lead to GAIL registering gas transmission EBITDA of four times in the next seven years, thereby increasing share of its annuity earnings as well improving risk profile,��� an I-Sec note to clients said.
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