IndiaNivesh Securities has maintained 'Hold' on GAIL with target price of Rs 435 as against current market price of Rs 381 in its report.

Commenting on the investment rationale, the stock broker said, "GAIL reported Q4FY15 PAT number was below our expectation led by weak performance in Petchem and natural gas marketing margin along with inventory loss of Rs.8.3 billion. Net profit stood at Rs 5.1 billion vs our expectation of Rs 7.6 billion. Company has not paid any compensation towards subsidy for OMC’s losses in Q4FY15. Top line decreased by 2% YoY and 5% QoQ to Rs. 142.7 billion, below our estimates of Rs 147.46 billion dragged by lower than expected revenue from natural gas transmission business.

While the long term prospects are positive with likely new gas supplies, there are no near term triggers and concerns continue on 1) transmission volume increase, 2) profitability of petchem and 3) subsidy sharing. We maintain Hold rating on the stock with target price of Rs. 435."

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