Buy GAIL India, target of Rs 447: Angel

Angel Broking has recommended a buy rating on GAIL India with a target price of Rs 447 in its June 27, 2008 research report. "Natural gas availability in India is set to rise dramatically over the next 2-3 years, and GAIL being present in every area of the natural gas value chain is expected to be one of the prime beneficiaries. GAIL's revenue stream is diversified and dependence on its legacy transmission business is gradually declining."

"Against the soaring Oil price scenario, we believe the Gas Sector is a safe bet. At current levels of Rs 341, the stock is quoting at attractive valuations of 8.5x FY2010E Earnings of Rs 40.0 and 1.7x P/BV. We Initiate Coverage on the stock, with a Buy and SOTP Target Price of Rs 447," says Angel's research report.

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