GAIL is the country's largest natural gas company with annual revenue of around Rs 17,000 crore. owns and operates the largest natural gas pipeline network in India and handles over 75% of the total gas transported in the country. Growing at almost 14% over last 10 yrs.
With commissioning of new pipelines and improvement in gas availability, GAIL is likely to earn additional revenues of Rs 1,250 crore annually by FY09 and another Rs 2,750 crore annually from FY11 onwards. This alone will translate into a CAGR of 16.7% in operating profit over the next four years.
GAIL’s investments in petrochemicals , CGD and exploration business will add value to its business over the next 2-3 years. GAIL’s dividend yield is likely to rise to 4.5% by 2011. This is an added incentive for investors.
Presently trading @ P/E of 12. To consider bonus issue on 23d of june.
52 wk high - 555 low - 285
Profitability may get affected due to govt subsidy burden.
Buy for med to long term.
Tgt - 460+
1 comment:
Co gave bonus 2:3. The tgt price after bonus comes to 303 which has been achieved today.
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