Shares of GAIL (India) Ltd drop as much as 3.2 pct to their lowest since Oct 24.
Stock posts biggest intraday pct loss since Aug 10.
Gas utility reported a 42 pct 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 pct to 13.12 bln rupees; LPG transmission services revenue up about 8 pct.
Strong transmission performance is unlikely to sustain, says Deutsche Bank; keeps its "sell" rating on stock.
CLSA says has clear positive view on Gail's gas transmission business but fears all these gains could be offset by an expensive long-term U.S. LNG contract in a severely oversupplied global LNG market in next 3-5 years.
GAIL stock, near +1SD of its historical average PE, seems to be ignoring these risks, CLSA says, retains "sell" rating.
Shares of state-run co have risen 38 pct this year until Tuesday.