Firstcall Research recommended Buy on GAIL with target Rs 493 against market price Rs 452 in its report.

Commenting on the investment rationale, the stock broker said, "Total income of Rs 135.45 billion in the first quarter of financial year 2014-15 reported an increase of 4.53% y-o-y as against Rs 129.57 billion in the corresponding period last financial year.  Profit after tax was at Rs 6.21 billion in Q1 FY15 as against Rs 8.08 billion in Q1 FY14.  In Q1 FY15, net sales from Natural Gas Marketing increased by 6% to Rs 116.69 billion as against Rs 110.59 in the corresponding quarter of the previous year. The petrochem portfolio of GAIL is expected to increase to 1.6 million tons per annum by 2015.

Over FY2013-16E, we expect the company to post a CAGR of 14% and 5% in its top-line and bottom-line respectively. Hence, we recommend 'Buy' for GAIL (India) with a target price of Rs 493 on the stock."

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