Shares of GAIL (India) Ltd dropped as much as 3.2 per cent to their lowest since October 24.

The stock posted its biggest intra-day percentage loss since August 10.

At about 11.40 pm, the stock was off its lows and trading down 1.28 per cent or Rs 5.85 at Rs 450.60 on the BSE.

The gas utility reported a 42 per cent 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 per cent to Rs 1,312 crore; LPG transmission services revenue were up about 8 per cent.

Strong transmission performance is unlikely to sustain, according to Deutsche Bank. It has retained its “sell” rating on the stock.

CLSA said it has a clear positive view on GAIL's gas transmission business but fears all these gains could be offset by an expensive long-term US LNG contract in a severely oversupplied global LNG market in next 3-5 years

The GAIL stock, near +1SD of its historical average PE, seems to be ignoring these risks, CLSA said and has retained “sell” rating.

Shares of the state-run company have risen 38 per cent this year until Tuesday.

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