Mahanagar Gas Ltd. share price target

penetration from rising vehicle and PNG penetration. We continue to like MGL's business given their dominating share in the growing markets of Mumbai and suburbs. Reiterate BUY. Healthy margins and volume traction drive earnings: Mahanagar Gas' (MGL's) reported Q3FY19 EBITDA and PAT at Rs2.4bn (PLe: Rs2.2bn; +19%YoY) and Rs1.48bn (PLe: Rs1.4bn; +20%YoY), respectively. The earnings momentum was due to higher than expected Q3 gas sales volume of 8.1% YoY and better margins. Going forward, CNG volumes is likely to remain healthy on the back addition of new...

29 January 2019 Against our expectation of +6% volume growth, MAHGLs total volume growth came in at +8% YoY for 3QFY19. INR appreciation helped the company to increase its EBITDA/scm from INR8.1 in 2QFY19 to INR8.8 in the quarter. Led by higher volumes and margins, EBITDA came in at INR2.4b (est. INR2.2b, +19% YoY, +8% QoQ), while PAT came in at INR1.5b (est. grew at 8% YoY while total PNG growth stood at 7%. Within PNG, domestic volume grew at 13% YoY, 6% QoQ. MAHGLs total sales volume stood at 2.96mmscmd, a growth of 8% YoY, flat sequentially.

BP Energy reckons that India would drive the global energy demand driver over the next 25 years. India is expected to witness an investment of ~ USD 300 bn over the next 10 years in setting up of oil refineries, oil and gas pipelines and CGD network expansion as it builds infrastructure to cater to the massive demand surge, according to Dharmendra Pradhan, Oil Minister, India. India is the third largest energy consumer...

Mahanagar Gas Ltd (MGL) is one of the India's leading Natural Gas Distribution Companies. MGL is engaged in supplying natural gas in Mumbai and is presently the sole authorized distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and the Raigarh district in the state of Maharashtra. MGL is a joint venture between GAIL (India) Ltd and the BG Group, (U.K.) - both together held 65% (32.5% each) of equity (before the latest part stake sale by BG group). MGL plans to expand its gas distribution network in its current geographical areas (GA), i.e. Greater Mumbai (GA1) and surrounding regions (GA2) such as Mira-Bhayander, Thane (Urban) -Vashi-Belapur, Kharghar-Panvel-Taloja, Kalyan-Dombivali-Ambernath and Ulhasnagar....

ICICI Securities Ltd | Retail Equity Research Mahanagar Gas (MGL) reported its Q2FY19 results, which were above our estimates driven by higher volumes. The topline increased...

Our target is Rs 1,071/sh (19x Sep-20E standalone EPS). Maintain BUY. MGLs 2QFY19 revenue came in at Rs 6.97bn, up 30.5% YoY led by 9.5% YoY increase in volumes to 3mmscmd and 30% YoY increase in realisation for PNG to Rs 31.2/scm. Higher gas prices and depreciation of rupee resulted in increase in raw material and operating cost. EBITDA stood at Rs 2.21bn up 10.6% YoY and down 1.1% QoQ. Per unit EBITDA margin was up 7.8bps YoY and down 43.5bps QoQ to Rs 8.1/scm. APAT came in at Rs 1.36bn (+9.2% YoY, -0.46% QoQ).

13 November 2018 EBITDA rose 11% YoY (+5% QoQ) to INR2.2b, ahead of our estimate of INR2.1b, led by better-than-expected sales volume. Volume growth was INR340m; +19% YoY, +4% QoQ) and (b) higher other income of INR182m came in flat YoY at INR8.1/scm (in-line; adjusted at INR8.6 for 1QFY19). Overall volumes grew sharply by 9% YoY to 2.96mmscmd in 2QFY19, led by an increase of 9% YoY in CNG volumes and 10% YoY in PNG volumes. MGLs performance has been encouraging in terms of volume growth. Despite higher domestic gas price, INR depreciation and increased commission to OMCs, its EBITDA/scm is the highest among listed players. We maintain our EBITDA/scm assumption at INR8 for FY19 and INR7.9 for FY20. With 1HFY19 EPS at INR26.8, we maintain our FY19 EPS estimate at INR52.1.

ICICI Securities Ltd | Retail Equity Research Mahanagar Gas (MGL) reported its Q1FY19 results that were above our estimates driven by higher volumes. The topline increased 16%...

Mahanagar Gas's (MAHGL) Q1FY19 earnings beat estimates at Rs 1.3bn (+3.2% YoY, +22.5% QoQ), driven by (a) above-expected volumes of 261mmscm and (b) stronger adj. EBITDA margins of Rs 8.6/scm. CNG volume growth (+12.6% YoY) looks unsustainable as management maintained its 6-7% annual growth guidance. Though we raise FY19-FY21E earnings by 7-9% on higher margins and hence increase our DCF-based fair value to...

Our target is Rs 1,292/sh (27x Jun-20E standalone EPS). Maintain BUY. MGLs adjusted 1QFY19 revenue came in at Rs 6.32bn, up 19.1% YoY led by 12.9% YoY increase in volumes to 2.9mmscmd and higher realisations at Rs 24.2/scm (+6.4% YoY). The company has finalised the negotiations with OMCs with respect to trade discounts and accounted additional discount of Rs 129.3mn relating to period from Jan-15 to Mar-18. This has been netted off from revenue for this quarter.