GAIL a safe, defensive bet: Dilip Bhat

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GAIL a safe, defensive bet: Dilip Bhat

GAIL a safe and defensive bet, says Dilip Bhat, Joint MD, Prabhudas Lilladher.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Dilip Bhat See what other Experts & Brokerages are saying about GAIL See messages about GAIL

GAIL a safe and defensive bet, says Dilip Bhat, Joint MD, Prabhudas Lilladher.

Bhat told CNBC-TV18, "I would go with Cairn India on GAIL. I am little surprised that GAIL is falling may be for a year or two they had a cash mismatch, probably their capex was more than the cash they were generating but I would still think that GAIL is particularly safe and defensive at the same time the kind of expansion that they have put in place and the returns which are linked to the expansions I would still think that GAIL at these levels and may be at slightly lower levels would become good attractive bet."

He further added, "I would still play for the other two stocks which is Petronet LNG and Indraprastha Gas which will still continue to be a very steady story, a steady growth of may be 15-20% at the bottom line and may be ROE of around 23-24%. So those are slightly smaller market cap companies but they would still be better but in the front line GAIL appears to be still the pick of the lot."

"If you look at United Spirits balance sheet they are over leveraged at the moment despite the fact that the growth is good I don't think that the debt levels give any comfort and especially the very fact that they are a part of the collateral of Kingfisher those worries will still remain. Both the stocks will remain vulnerable and the strategic valuation lifts it to a different level. So I would not bet on them and if there is something in the portfolio I would look to exit.