Friday, August 19th, 2022 17:33:46

GAIL stock: good results priced in

Updated: March 23, 2016 1:04 pm

Investors will require more than one good quarter from GAIL (India) Ltd to alter their view on the stock, partly because the stock has gone up by almost a fourth in the last three months. One reason for this outperformance is the renegotiation of Qatar’s RasGas liquefied natural gas (LNG) contract announced at the end of December, which is expected to reduce input costs in GAIL’s petrochemicals business. But with petrochemical prices coming down, one will have to see whether the segment’s profit improves meaningfully.

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