Enam Securities puts 'upgraded' on GAIL

>> Saturday, June 20, 2009

CMP: Rs 287.50
Target price: Rs 302
GAIL is an outperformer vis-a-vis its peers at Enam Securities with an ‘upgraded’ price target of Rs 302 against Rs 265 earlier. Explaining the rationale behind the positive outlook, the brokerage said, “GAIL gas volumes are likely to increase to 132 mmscmd by FY11 on account of higher gas supply by RIL and PLNG. Also, oil sector reforms related to subsidy could be a trigger.”

Enam estimates the company’s earnings per share for 2009-10 at Rs 24.4 against Rs 22.1 in 2008-09. In 2010-11, GAIL’s EPS is estimated at Rs 26.4 - Economic Times