In its latest research report, Nirmal Bang, an equity research firm said that GAIL India can give good returns in the short term.

The report further stated that, if the counter is successful to breach Rs 372 levels, then it will hit a target of Rs 400.

The stock has strong support at Rs 346.

Today (Oct 06), the shares of the company opened at Rs 366.50 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 20.20 & 17.75 respectively. The share price has seen a 52-week high of Rs 371.40 and a low of Rs 165 on BSE.

In a major move, Indian administration may permit GAIL India to charge a marketing margin on trade of administered pricing mechanism (APM) or subsidized natural gas.

The government presently controls the cost at which the gas developed from fields given to ONGC & OIL get sold.

GAIL has been appointed as the directorial agency for marketing the fuel, called APM gas, from such fields.

GAIL on Sep 30 said that it is building pipelines valued at Rs 180 billion that will boost its gas transportation network by 6,000 kms by 2012.

Currently, GAIL has a network of 7,000 kms.

GAIL has invested in 5 new pipelines and taken upgradation of some subsisting networks.