GAIL share price in focus ahead of Q3 result; should you buy the stock for short term?
BSE on Monday, January 29, ahead of its December quarter earnings. GAIL share price opened nearly 2 per cent higher at ₹168.15 against the previous close of ₹165.40 but soon pared most gains. Around 9:40 am, the stock traded 0.88 per cent up at ₹166.85.
GAIL (India) will report its Q3FY24 earnings on Monday, January 29. GAIL share price has clocked healthy gains in the last three months, jumping over 38 per cent, significantly outperforming the equity benchmark Sensex. The Sensex has gained over 10 per cent in the same period.
On a monthly basis, GAIL share price is up nearly 3 per cent in January so far, after registering a strong gain of over 23 per cent in December and over 10 per cent in November. Experts point out that GAIL’s transmission volumes increased to 118.3 million metric standard cubic meters per day (mmscmd) in the first half of the current financial year (H1FY24) led by an uptick in demand from new fertilizer units, city gas distribution (CGD) and refineries, and normalcy in gas supply from Gazprom Marketing and Trading Singapore Pte Limited (GMTS). (Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Prathamesh Masdekar, a research analyst at StoxBox said though GAIL’s gas volumes are likely to improve along with growth in its petrochemical segment, there could be a marginal contraction in the company's gas marketing margins in Q3FY24.
Also Read: Vodafone Idea share price jumps ahead of Q3 results today. Buy or sell? However, Masdekar added that an improvement in LPG realizations for the third quarter will help in reducing the impact on the EBITDA levels of the gas company. "With improvement seen in GAIL’s capacity utilization
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