Buy GSPL, tgt Rs 80: Angel Broking

Angel Broking has maintained buy rating on GSPL with target price of Rs 80, in its July 03, 2008 report. "GSPL is expanding its pipeline network to industrial areas like Vapi and Morbi where the demand is over 1.0mmsmcd+. Transmission volumes for Torrent Power will start kicking in from October 2008 onwards initially from 1.65mmscmd to a peak of 4.95mmscmd by March 2009. The company has been heavily incurring capex for its pipeline since the past few years and plans to invest over Rs 650 crore in FY2009. Transmission for RIL KG basin will also commence from November onwards thus improving volumes. We remain positive over the gas transmission business and believe that growth is expected to kick in from domestic gas availability, which is set to rise hereon. Due to the recent market turmoil, we have assigned higher risk weightage in our DCF valuation. Based on our DCF valuation, we maintain Buy with a revised Target Price of Rs80 (Rs107)" says Angel Broking report.