GAIL (India) has been selected for the second year in a row as an index constituent of the prestigious FTSE4Good Emerging Index.
Shares of Gail India and Gujarat State Petronet (GSPL) gained 3-7 percent intraday Friday after Petroleum and Natural Gas Regulatory Board (PNGRB) revised tariffs for key gas transportation pipelines.
The revised tariffs announced for GSPL and some of GAIL's pipelines.
According to Citi, the quantum of tariff hike is ahead of expectations. GSPL looks best placed to benefit from the latest developments as 28 percent tariff kike is going to drive material upgrades. The estimate tariff hike could drive 15-19 percent upside to FY19-21 earnings.
The research house also remain positive on Petronet LNG and Indraprastha Gas (IGL).
The new tariffs are w.e.f. April 2018 with the next review is likely after five years. For GAIL, the latest revisions could lead to a 5 percent increase in FY19-20 earnings, Citi added.
GAIL (India) has been selected for the second year in a row as an index constituent of the prestigious FTSE4Good Emerging Index.
The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices worldwide.
The Global Sustainability Index has been created by global index provider FTSE Russell, a wholly owned subsidiary of London Stock Exchange Group
T Natarajan, MD of GSPL, told CNBC-TV18, "PNGRB announced increase in high pressure (HP) tariff by 28 percent and low pressure (LP) by 100 percent. The company is expecting Rs 350 crore increase in topline due to revised tariffs."
Margin would increase in tandem with topline and expecting volumes to go up in coming year, he added.
At 10:02 hrs Gujarat State Petronet was quoting at Rs 185.90, up 3.02 percent and GAIL India was quoting at Rs 389.75, up 3.40 percent on the BSE.
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