MGL is the third largest natural gas distribution company in India. Notably, it is the sole authorised distributor of CNG and PNG in Mumbai & its adjoining areas. CNG penetration in Mumbai is relatively low at 25-30% vs Delhi which is at 35-40%. This leaves a lot of headroom for growth for the company. MGL enjoys the benefit of strong parentage as it is promoted by both GAIL (India) Ltd and BGAPH (a subsidiary of Royal Dutch Shell Plc) MGL's EBITDA/scm is expected to decline to Rs6.75 in FY18E from Rs6.89 in FY17. However, the same is estimated to improve to Rs6.92 in FY19E....