Top Sector for Long Term - Natural Gas Players
Natural Gas producing and transporting companies will has bright prospects in the coming years. The Natural Gas Production & Infrastructure sector has showed a robust performance in the last quarter for FY10, which is likely to continue in future as the availability of gas increases and the necessary infrastructure is put in place.
As the availability of the natural gas is growing and demand remains strong, the transporting infrastructure is the only bottleneck in the future growth of the industry. All the companies have lined up heavy capex plans to extend their pipeline networks and increase their gas carrying capacity.
All the companies are currently trading in a price-to-earnings multiple (P/E) range of 13 and 18.5 as against the Sensex P/E of 20.3. These valuations appear attractive for long-term investment, considering the expected profit growth in the coming years.
Top Stock Picks:
- GAIL
- Gujarat State Petronet Ltd (GSPL)
- Gujarat Gas Company Ltd (GGCL)
- Indraprastha Gas (IGL)
Related Article: Natural gas players: Attractive for a long term
Source: Economic Times
