Mumbai: Shares of GAIL, currently trading at a 38 per cent discount to its long-term price-to-earnings average, could give a good return in 2020 if it gets relief from Rs 1.7 lakh crore of payment related to adjusted gross revenue (AGR) demanded by the department of telecommunications (DoT), analysts said.
The state-run natural gas marketer would be the biggest beneficiary of the increasing domestic gas and LNG production in the country, they said. But the stock has declined 17 per cent in the past one year, mainly due to concerns over possible restructuring of business segments, lower-than-expected results and the recent AGR-related demand.
DoT has raised the demand after the Supreme Court expanded the definition of AGR, based on which telecom licence holders need to pay their licence fee to the government.
