GAIL (India) shares have rallied 67% in last one year, outperforming Nifty which has delivered 19% returns during this time. Meanwhile, the gains by Nifty Oil & Gas have been to the tune of 13%.
Most PSU oil stocks gave over 60% returns in the last one year with the exception of ONGC and BPCL.ONGC and OIL stock is trading at a discount to international
Most analysts are confident about GAIL’s growth prospects due to rising domestic gas demand, strengthening infrastructure and preference for clean and affordable energy.
UBS has put a price target at Rs 150 for GAIL arguing that the utility nature of the business could lead to re-rating in the stock. India s higher gas demand and GAIL s coming pipelines to drive 8% volume CAGR.