1302.7000 1.40 (0.11%)
NSE Sep 12, 2025 15:31 PM
Volume: 161.9K
 

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Mahanagar Gas Ltd.
10 Aug 2019
1302.70
0.11%
HDFC Securities
MGL did not win any new GAs in either of the recently concluded ninth or tenth rounds of CGD biddings. This factor may weigh on its long-term growth. We believe that the company will continue to enjoy pricing power and be able to maintain its per unit spread. This is because of a loyal customer base of CNG and commercial customers (who together comprise ~80% of total sales mix), that are less price sensitive than industrial customers. Moreover, we do not foresee any significant regulatory adversity in its CGD business either through a change in gas allocation or capping returns. We maintain BUY on MGL post an impressive performance on spreads albeit disappointing volume growth. Our TP is Rs 1,133/sh (19x Jun-21E standalone EPS).
Mahanagar Gas Ltd. has an average target of 1562.50 from 6 brokers.
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