GAIL, LPG production, CGD networks, Urja Ganga pipeline, natural gas trading
Commissioning of customer projects, completion of pipelines, and rising oil prices all bode well for gas demand and GAIL We expect gas trading and LPG production to also show improved profitability. Increase target price to Rs 173 (from Rs 156) and maintain ‘buy’ rating as stock still trades 15% below its 10-year mean core PE.
Gas demand finally set to rise: Long-awaited commissioning of HURL fertiliser plants in Gorakhpur, Barauini, Sindhri, and Matix has started and this is set to drive gas demand for GAIL. Further return to normalcy and start of public transport will further increase demand by city gas distribution (CGD) networks. In this backdrop, as sections of GAIL’s
