GAIL India to be hot pick of June 20 trade

It could be a disappointing start to the week over the news of Rajan's exit, but in the surprising moves of the market, GAIL India, could likely be the stock to look out for. The Sensex stock will likely agree to Tamil Nadu’s demand to realign the proposed pipeline to connect Petronet’s LNG terminal in Kochi with Bengaluru along with the national highway.

The project which costs Rs 3300 crores was stuck over the years as farmers were not in the favour of the project. The project was expected to be completed by 2013.

Gail India over a period of 3 months is up by 8 per cent. Over a period of 6 months, the stock has risen by 15 per cent. The stock's 52-week High/Low stand at Rs 418/260.25.

For the full fiscal year 2015-16, the company has reported a net profit of Rs 2,299 crore and a turnover of Rs 51,614 crores. In the previous financial year, it had a net profit of Rs 3,039 crores on a turnover of Rs 56,569 crores.   

On a quarterly basis, the company has reported a 39.7 per cent increase in the net profits on higher transmissions and higher gas trading margins. Net profit in this quarter stands at Rs 770 crores as compared to Rs 511 crores in the same quarter last year.

GAIL is an India based governmental undertaking. The company’s business verticals comprise of transmission of natural gas, liquid hydrocarbon, LPG Transmission, Petrochemicals, city gas distribution, GAIL TEL (the Telecom& telemetry services are of GAIL India) and Power.