GAIL: Demand, fertiliser plants, city-gas distribution to drive earnings

Rising gas demand, new fertiliser plants to drive earnings

Domestic gas demand has rebounded to pre-Covid-19 levels now as reflected in GAIL’s stock prices. The country’s largest state-owned gas processor and distributor has seen its stock prices surge 25 per cent from May lows. Though the June quarter performance reported last week disappointed the Street, prospects are nevertheless improving for the company. 

As gas is a cheaper and cleaner alternative to other fuels, it has seen demand rise. The higher availability of gas through imports, increasing network, and lower gas prices have helped. 

Though there was some disruption because of the lockdown, the worst might be over. Manoj Jain, chairman and