Indiabulls Securities has recommended a hold rating on GAIL, in its report dated November 10, 2009. The stock closed at Rs 377.60 on November 12, 2009.

"We expect GAIL to report an improved performance in the coming quarters, as it starts delivering on its natural gas supply and trading agreements. In addition, with increased gas production from the KG-D6 basin, we expect an increase in transmission volumes of the Company. Our three-stage DCF valuation suggests a fair value of Rs 361 for the stock. We have assumed a WACC of 12.6% for the explicit and middleperiod forecasts and 11.8% for the terminal period. Terminal growth rate has been taken at 5%. Since our target price does not provide any significant upside potential from the CMP of Rs 374.5, we maintain a Hold rating," says Indiabulls Securities Research report.