India's city gas distributors gain on strong outlook

Gujarat Energy

27/09/2022 10:03

(Updates throughout with analyst comments, other gas
distributors)
    ** Shares of city gas distributors Gujarat Gas  GGAS.NS ,
Mahanagar Gas Ltd  MGAS.NS , Indraprastha Gas  IGAS.NS  rise
over 5%, each
    **  Indraprastha and Mahanagar see their best intra-day pct
gain since Aug. 12 and Aug. 11, respectively
    ** Gujarat Gas set to mark its biggest pct rise in nearly
three weeks if gains hold 
    ** GGAS among top gainers in the Nifty MCP 100 index
 .NIFMDCP100 , which is up 0.7%
    ** Current margin profile for Gujarat Gas is vitiated by a
record divergence in LNG and LPG prices, but normalisation is
long overdue and will likely happen over the next 18 - 24 months
- ICICI Securities said in a note
        ** Trends on domestic gas price and LNG prices remain
uncertain, ICICI adds
  
        ** Indraprastha Gas well-placed post additional gas
allocation, with 90% of CNG and domestic PNG demand being met by
domestic gas - Emkay Global analysts said in a note
  
        ** Mahanagar Gas shares down 7.5% so far this year as of
last close, while Indraprastha is down ~16% and Gujarat Gas
23.3%
  
 (Reporting by Meenakshi Maidas in Bengaluru)
 ((meenakshi.maidas@thomsonreuters.com;))