Buy GAIL India; target of Rs 622: Motilal Oswal
Motilal Oswal has upgraded Gail India from neutral to buy rating in its December 07, 2007 reports. “GAIL will be one of the key beneficiaries of several large-scale gas finds in India in recent years. We expect GAIL’s transmission volumes to grow by 66% to 136mmscmd by FY10 from 82mmscmd currently (CAGR of 29%), as compared to 5% CAGR growth over last 5 years. We have increased our FY09E PAT estimates for GAIL by 9%, due to improved volume outlook. Our EPS estimates for FY09E are Rs35.3 and for FY10E, Rs 37.9. Our target price of Rs 622 per share offers upside of 32% from the current Price. We upgrade to Buy,” according to Motilal Oswal research report.D
