India's Mahanagar Gas rises, Axis Capital starts with "buy"

Mahanagar Gas

20/03/2025 08:13

** Shares of city gas distributor Mahanagar Gas MGAS.NS rise as much as 4.2% to 1,388.90 rupees, highest since November 12

** Axis Capital initiates coverage with "buy" rating, TP of 1,580 rupees - 18.6% higher than Wednesday's close

** MGAS has increased its capex in FY25 to 10.5 bln rupees  ($121.6 mln) and has guided annual capex at 10 bln-11 bln rupees in coming years - Axis

** Brokerage expects 10% CAGR in co's volumes over FY25-27, which should drive a 10.4% CAGR in PAT; calls Mahanagar Gas its preferred pick in the sector

** Avg rating of 28 analysts equivalent of "buy", median PT is 1,461 rupees - LSEG data

** Stock up 6.7% YTD

($1 = 86.3570 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)

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