Stock Review: GAIL

India's biggest natural gas transporter Gail is likely to do well in 2011. The company is on a mega-expansion drive, which will triple its gross block and double the gas transporting capacity by 2013. At least a 43% addition to existing pipeline capacity is expected in 2011. In India, natural gas is a unique industry, where demand is likely to grow absorbing the available supply. This reduces the commercial risk for Gail. The company is also investing heavily in its other businesses such as downstream petrochemicals, city gas distribution and upstream exploration. The company's strong financials and steady growth prospects make its P/E of 17.7 reasonable. With a beta factor 0f 0.55, the scrip also has very low volatility.