Feb 14, 2017 01:52 PM IST | Source: Moneycontrol.com

Buy GAIL; target of Rs 535: HDFC Securities

HDFC Securities is bullish on GAIL has recommended buy rating on the stock with a target price of Rs 535 in its research report dated February 11, 2017.

Buy GAIL; target of Rs 535: HDFC Securities

HDFC Securities' research report on GAIL

FY17 is proving to be a complete turnaround year for GAIL. There will be a boost in profitability across all segments led by (1) higher margins in petchem and LPG. Strong crude prices will lead to firm realisations for petchem and LPG.

Outlook

Upcoming LNG facilities in USA and Australia will completely distort the global gas market equilibrium. We believe that gas prices will remain muted for a long period of time. Our SOTP target is Rs 535/sh (7.3x FY19E standalone EV/EBITDA and Rs 129/sh from investments). Maintain BUY.

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