The recommendation of investment is considered with long term view instead of short to medium term. Currently GAIL is going through rough patch in the business segment where the gas transmission segment to domestic production is down. On top of that they are also struggling on the royalty section when it comes to states where they are producing gas. On the positive side, they renegotiated long term liquefied gas contract with Qatar and planning to do with others too.
GAIL also sold some of their
assets in US to Shell. Currently, they are in the capex investment mode be it
pipeline to gas carrying vessels. The moment global economy recover, GAIL
realization will go up and it will improve their profitability. Currently, they
are relieved due to non recovery of subsidy by Government.
Company is also a target of
government wherever they want to raise fund. Clever investor with spare fund
may consider investing in GAIL with minimum 2 to 3 years. For the last one year
share price is moving in the range of 280 to 410 INR. One may also use selloff
to accumulate and sell it when market rally
Disclaimer - Consult your Financial
advisor before investing
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