Stay away from Gujarat Gas, GSPL: Edelweiss Securities

Stay away from Gujarat Gas and GSPL, says Niraj Mansingka of Edelweiss Securities.

Mansingka told CNBC-TV18, "If you recall something back we had come out with report on natural gas. We had suggested investors to get out of GAIL and GSPL citing the similar concerns on regulation. On IGL and Petronet our view is slightly different because we believe that earnings in these companies will offset the risk of regulation in the future. Right now we are still suggesting the investors to stay away from Gujarat Gas and GSPL; these are the stocks we have under coverage and while there are valuations looks slightly better from current levels but there are still negative overhangs on both the companies."
He further added, "In GAIL, there is a negative overhang of a possible final tariff revision for the pipeline, which may be brought down by almost 10% in our expectations and in Gujarat State Petronet Limited we are expecting the tariff decision to come anytime soon, which can be an overhang to the stock. So we are suggesting investors not to invest in these stocks but we continue to remain positive on Petronet LNG because we don