Mahanagar Gas Share Price Updates 10 June 2024: MGL unveils growth plans at analyst meet, shares gain over 2%

Motilal Oswal’s research stated, “We expect a 7% CAGR in volume over FY24-26, driven by multiple initiatives implemented by the company, such as partnering with OEMs to drive conversions of commercial CNG vehicles, and providing guaranteed price discounts to new I/C-PNG customers. The stock trades at 12.5x FY26E EPS of INR110.6. We value it at 14x FY26E EPS to arrive at our TP of INR1,565. Reiterate BUY. We continue to prefer MAHGL over IGL owing to its 30% cheaper valuation (on FY26E P/E basis), with broadly similar growth profile in the medium term and relatively lower EV risk.”

Oil and gas stocks that are trading higher include Castrol India (4.28%), Gujarat State Petronet (1.93%), Indraprastha Gas (0.86%), and Adani Total Gas (0.93%). Among the losers are Gujarat Gas Company (-1.13%), Oil India (-0.39%), and GAIL India (-0.23%).

The Indian government outlined an investment plan of $67 billion in the natural gas sector, set to be executed by FY30. By this timeframe, India aims to expand its infrastructure to include 17,500 CNG stations, an increase from the 7,000 stations projected for FY24. Additionally, the country plans to achieve 120 million domestic PNG connections by FY30, building on the current number of connections for FY24. The gas consumption in India for FY24 was recorded at 182 mmscmd, with 98 mmscmd sourced domestically and 84 mmscmd imported, indicating a growing share of domestic gas in the overall consumption.

The company announced ESG initiatives aimed at enhancing its sustainability efforts. A compressed CBG plant with a capacity of 1,000 tonnes per day is planned for Mumbai. Additionally, four solar plants, each with a capacity of 10 kW, are being installed at the existing CNG and LNG retail outlets, and a 12 kW/m wind turbine is being set up at CGS Taloja. The company’s shares saw a rise of 2.91%, reaching ₹1,420.15 on the BSE.

Mahanagar Gas outlines growth plans and investments at its recent analyst meet, aiming for a 6-7% overall volume growth and a ₹10 billion capex for FY25. The shares were up by 2.49% to ₹1414.30 at 10.20 am on the BSE, according to a report by Motilal Oswal.

During the analyst meet on June 7, 2024, Mahanagar Gas Ltd. highlighted its plans, targeting a 6-7% overall volume growth, with the recently acquired UEPL expected to contribute over 10% growth. The management confirmed an APM gas allocation of approximately 70%, supplemented by additional HPHT volumes. MAHGL also announced a planned capex of ₹10 billion for FY25, with ₹2 billion allocated to UEPL.