India's IGL, MGL rise over 3% on CLSA's positive growth view

Indraprastha Gas

21/03/2023 05:38

** Shares of Indraprastha Gas  IGAS.NS  and Mahanagar Gas
 MGAS.NS  rise as much as 3.71% and 3.04%, respectively
    ** Rise comes after CLSA upgrades IGAS to "buy" from
"outperform" and raises target to 585 rupees from 420 rupees, an
implied upside of 39%
    ** Brokerage maintains "buy" on MGAS and raises target to
1,260 rupees from 1,020 rupees
    ** New allocation policy for deep-water gas and fall in LNG
prices should aid margin expansion for retail city gas players
like IGAS and MGAS, says CLSA
    ** Adds CNG push by auto companies should aid volume growth
    ** Regulatory regime on domestic gas pricing to become more
favourable from April 1 and pricing power is set to return for
city gas companies: CLSA
    ** Trading volume of IGAS and MGAS are both above the 30-day
avg, as of 11:02 a.m. IST




 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))