Shares of GAIL India added 4.2 percent intraday Monday as foreign brokerage house Jefferies has maintained buy rating on the stock with a target of Rs 400 per share.
The company has reported a net profit of Rs 1,021 in Q4FY18, up 293 percent from Rs 260 crore in the same period of last fiscal.
The profit in fourth quarter was higher due to a one-off impairment GAIL had taken on its investment in Dabhol LNG terminal in the corresponding quarter of previous fiscal.
The company's profit fell 19% on quarter on quarter basis, but it still left FY18 EPS 32 percent higher, said Jefferies.
Jefferies expect FY19 to be stronger, helped by higher crude.
With valuations modest at 9-12x P/E, the risk-reward skewed to the upside, it added.
At 11:45 hrs GAIL India was quoting at Rs 333, up Rs 13.40, or 4.19 percent on the BSE.
Posted by Rakesh Patil
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