Mahanagar Gas Ltd. share price target

Considering all the above reasoning discussed, we recommend buying the stock in the range of 1090-1140, for...

Q1FY22 revenue grew 140.3% YoY (-14.9% QoQ) on higher volumes (currently surpassed pre-COVID levels) of 115.5% YoY to 218.3 Standard Cubic Meter (SCMmn) and improved realization of Rs. 30.6/SCM in industrial and commercial sales. MGL however saw a sequential dip owing to COVID-19 impact on volumes. PNG/CNG revenue stood at Rs. 255cr/Rs. 354cr with a sales volume of 141.1SCMmn (>70% of total volume)/~42.6SCMmn (+9.2% YoY) whereas PNG Industry/commercial volumes were 34.5SCMmn (+86.0% YoY). Blended volume was at 2.398MMSCMD with increasing domestic PNG demand (+2.4% QoQ) to 0.468MMSCMD (vs. 0.457MMSCMD...

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recovery in the second half got reflected in later quarters, however the second round of restrictions, though less severe, affected Q1FY22 revenues as it decreased by 14.2% on a sequential basis to Rs. 615.49 cr. As a result operating profit declined by 3.8% q-o-q q at Rs. 303.99 cr. In a higher operational cost environment, the management has hinted of successful...

Benign gas prices, private vehicle conversion to drive volumes and earnings. margins even as we leave volume assumptions unchanged. Record margins (-16% QoQ), due to lockdown restrictions. MGL remains a play on increased gas usage from rising vehicle and PNG penetration in a benign gas price environment. We continue to like MGL's business, given its dominating share...

MGL reported volume growth of 3.8% YoY on a lower base. CNG volume grew 2.2% YoY to 2 mmscmd in line with estimate. On the PNG front, volumes grew 7.9% YoY to 0.9 mmscmd. While industrial and domestic PNG segments reported growth of 21.7% YoY, 8.9% YoY, commercial PNG volumes were still down 11.6% YoY. Given the cost economics of natural gas over other alternative fuels in conjunction with rising pollution concerns, achieving higher growth over the long term should not be a concern. The management said that CNG sales volume dipped up to 25-30% in the current...

MGL is one of the largest city gas companies in India

Q3FY21 revenue fell 11.2% YoY to Rs. 727cr (+32.5% QoQ) owing to drop in volumes by 9.2% YoY to ~254.9 Standard Cubic Meter (SCMmn). Blended volume stood at 2.77MMSCMD as demand for CNG strengthened post lockdown to 1.88MMSCMD - 62% of total volume (vs. 1.28MMSCMD in Q2FY21) while PNG volume stood at ~0.51MMSCMD in Q3FY21. MGL witnessed significant volume recovery trend with an increase of 33.6% in overall sales volume vs. Q2FY21. CNG and PNG Industry/ Commercial volumes down 15.3% /9.0% YoY, respectively, with commercial activities not resuming full-fledged whereas Domestic PNG rose 23.5% YoY with increasing *over or under performance to benchmark index...

MGL reported volume de-growth of 9.2% YoY as demand is yet to fully recover. CNG volume de-grew 15.3% YoY (our estimate: 5.6%) to 1.9 mmscmd. On the PNG front, volumes grew 7.2% YoY to 0.9 mmscmd driven by robust domestic PNG demand. While industrial and domestic PNG segments reported growth of 6.1% YoY and 23.5% YoY, commercial PNG volumes were still down 27.7% YoY. Given the cost economics of natural gas over other alternative fuels in conjunction with rising pollution concerns having higher growth rate over the long term should not be a concern. The...

Revenue for Q2FY21 dropped 36.3% YoY to Rs. 549cr primarily as volumes shrank 30.9% YoY to 190.7 Standard Cubic Meter (SCMmn). CNG and PNG Industry/ Commercial volumes declined by 42.0%/19.9% YoY, respectively, as lockdown and transport restrictions extended whereas Domestic PNG increased 21.6% YoY. Despite the impact of COVID-19 during the quarter, MGL achieved a growth in volumes QoQ. Blended volume stood at 2.07SCMmn, led by a strong demand recovery in CNG segment post lockdown (1.28SCMmn - 62% of total volume). Witnessed recovery at 90-95% of pre-COVID levels in Nov'20 as commercial activities gradually kicked off. PNG...