This Maharatna company is engaged in natural gas processing and distribution. Recently, Government of India’s attempt to renegotiate on the import pricing policy of LNG with Australia is expected to benefit gas utilities. Thereby GAIL, which also buys imported gases, would benefit from reduction in the prices. Standing at 78MMSCMD, GAIL has shifted its preference more towards long term contracts in LNG. The LT contracts increased to 20 FROM18MMSCMD while ST contracts declined to 8 from 15. Financially, despite subdued revenue growth, the stock's EBITDA and profit margins have shown substantial growth amid decline in raw material, employee benefit and impairment of asset expenses. Moreover, the company has been reducing its debt YOY since FY15, keeping D/E at 0.1x. The only risk persists is offtake obligation of 5.2 million tonnes of US LNG in 2018. However, it would sign one deal soon to hire LNG tanker for three years with a French oil company to haul the same gas. We recommend a BUY in the scrip for a target price of ₹435 and with a stop loss of ₹370.