India's Mahanagar Gas rises as analysts see faster FY25 volume growth

Mahanagar Gas

10/06/2024 07:52

** Shares of Mahanagar Gas Ltd  MGAS.NS  up 3.4% at 1,427.95
rupees
    ** Multiple analysts maintain their "buy" call on city gas
distributor as they see scope for higher volume growth on retail
outlets expansion, rise in CNG vehicle sales
    ** Jefferies ("buy"; PT: 1,600 rupees) sees MGAS' CNG
volumes rising 7% in FY25, says aggressive retail outlet
expansion could result in faster volume growth "in near to
medium term"
    ** Emkay ("buy"; PT: 1,680 rupees) believes MGAS' volume
expansion could hurt margins, but would remain ahead of rivals
thanks to operating efficiencies, high population density in
areas where co operates
    ** Motilal Oswal ("buy"; PT: 1,565 rupees) prefers MGAS over
costlier rival Indraprastha Gas  IGAS.NS  as both stocks offer
similar growth profile in the medium-term
    ** Twenty-nine analysts tracking MGAS rate it "buy" on avg;
median PT is 1,535.50 rupees - LSEG data
    ** MGAS up 18.3% in 2024 so far vs 12.6% rise in IGAS

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))