Despite strong Q3 results and outlook, GAIL stock yet to fire up

Most analysts are positive about Q3 results and guidance, with target prices ranging between Rs 200 and Rs 250

The gas transmission and marketing major GAIL (India) has delivered strong third-quarter (Q3) results, mainly on the basis of better profitability in the gas trading segment. The liquefied petroleum gas (LPG) and liquid hydrocarbon segments also delivered improved performances. 

Late in Q3, the petrochemical (petchem) margins improved for the petchem plant and capacity expansion is on schedule. The management thinks these margins are sustainable in the medium term.

The management guidance is that it expects gas trading volumes to increase 5-6 million metric standard cubic metres per day in 2022-23 (FY23). The commissioning and capacity expansion at its fertiliser plants