Keep buying on GAIL India with a target price of Rs 485.With robust growth in gas transmission business, we expect GAIL to witness revenue CAGR of 25.1% during FY08-10E. The only concern is a margin decline on account of petrochemical business and subsidy burden.the stock is attractively valued at FY10E P/E (adjusted for value of listed investments) of 8.1x.In the near term, likelihood of a bonus issue could provide momentum to the stock.
Monday, June 16, 2008
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