India's city gas distribution companies fall after APM allocation cut

Indraprastha Gas

16/04/2025 05:55

** Shares of Mahanagar Gas MGAS.NS, Indraprastha Gas IGAS.NS, Gujarat Gas GGAS.NS down 1%-5%

** Govt cuts administered price mechanism (APM) gas allocation to city gas distributors, effective April 16

** Antique Stock Broking says estimated de-allocation at about 3 mmscmd vs market expectations of about 0.8–1 mmscmd

** Adds, assuming APM fully meets domestic PNG needs, CNG allocation drops to 38% for IGAS/MGAS (from 50%–51%) and to 34% for GGAS (from 48%)

** Estimates CNG gross margin hit of 0.9–1 rupees/scm, along with varying EBITDA impacts

** YTD, IGAS down 16.3%, MGAS down 2.5%, GGAS down 14.2%

 (Reporting by Ashish Chandra in Bengaluru)

 ((ashish.chandra@thomsonreuters.com (+91 7982114624))