GAIL India cracks on Credit Suisse downgrade

MUMBAI: Shares of GAIL India fell as much as 3.48 per cent in intraday trade after brokerage Credit Suisse downgraded the stock to Underperform from Neutral.

According to the brokerage, the company’s gas trading business is deteriorating due to lower oil prices. It sees Rasgas prices to be a drag on petchem profitability.

Analysts at Credit Suisse are of the view that GAIL has appeared inexpensive on a discounted cash flow (DCF) on back-ended volume growth. With increasing risks to those forecasts, near term earnings concerns may matter more.