GAIL (India) Q2FY21 result was below our and consensus estimates mainly due to losses from trading business. However, the company reported strong performance from gas transmission and petchem business which benefited from higher volume and margin. On a positive note, the company has guided for better performance from trading business in H2 vs H1 (EBITDA loss of Rs8.5 bn), 10% growth in gas transmission volume in FY22 and over 100% capacity utilization at petchem going forward. We are cutting EBITDA/PAT by 10%/12% and 11%/13% for FY21E and FY22E respectively to factor in weaker trading profits and introduce FY23E financials. We cut our TP marginally to Rs109...