November 15, 2017 / 5:56 AM / 7 months ago

BUZZ-India's GAIL falls most in over 3 months; worries over sustaining transmission performance

** Shares of GAIL (India) Ltd drop as much as 3.2 pct to their lowest since Oct 24

** Stock posts biggest intraday pct loss since Aug 10

** Gas utility reported a 42 pct jump in Q2 profit that beat analysts’ estimates, but some analysts worry whether the transmission performance could be sustained

** Revenue from natural gas transmission services rose about 9.5 pct to 13.12 bln rupees; LPG transmission services revenue up about 8 pct

** Strong transmission performance is unlikely to sustain, says Deutsche Bank; keeps its “sell” rating on stock

** CLSA says has clear positive view on Gail’s gas transmission business but fears all these gains could be offset by an expensive long-term U.S. LNG contract in a severely oversupplied global LNG market in next 3-5 years

** GAIL stock, near +1SD of its historical average PE, seems to be ignoring these risks, CLSA says, retains “sell” rating

** Shares of state-run co have risen 38 pct this year until Tuesday

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