/images/ppid_59c68470-image-177061270228793304.webp)
/images/ppid_59c68470-image-177061016935462141.webp)
/images/ppid_59c68470-image-17706100975451925.webp)
/images/ppid_59c68470-image-177061003054642264.webp)
What is the story about?
Shares of Mahanagar Gas Ltd. (MGL) gained 2% on Monday, February 9, as brokerages JPMorgan and CLSA have projected up to a 35.3% upside on the stock, as it reported its third quarter earnings.
While JPMorgan is 'neutral' on MGL, CLSA has an 'outperform' rating.
JPMorgan
The analyst has a 'neutral' rating on MGL with a target price of 1,270 apiece, an upside of 10% from its previous close of ₹1,152.6 apiece.
It said the company's third quarter earnings beat estimates, driven primarily by lower gas costs, resulting in better-than-expected gross spreads.
It said MGL's volumes were also up 12% from last year, contributing positively to beat.
Its near-term margin risks look limited, although long-term concerns regarding growth still remain, JPMorgan said.
CLSA
CLSA has an 'outperform' rating on MGL with a target price of ₹1,560 per share.
It said the company's third quarter net profit was 4% ahead of estimates due to a beat in both volumes and margins.
Its overall volumes were a 3% beat to estimates, primarily driven by higher CNG demand along with strong annual growth in both, commercial and residential PNG.
It said 12% growth in CNG volume from last year was better than estimates of an 8% increase.
Domestic PNG demand increased by a strong 10% from the year-ago period and 4% sequentially. It was up 2% from estimates, CLSA said.
It added that industrial/commercial volumes increased 14% from last year but declined 3% sequentially.
MGL's profit after tax in the third quarter increased 4.6% to ₹202 crore from ₹193 crore in the previous quarter.
Its revenue was flat at ₹2,048 crore from ₹2,049 crore from the September quarter.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 4% sequentially to ₹351 crore from ₹338 crore.
MGL's operating margin expanded to 17% from 16.4% in the preceding quarter.
Its total volumes increased 9% to 4.5 million metric standard cubic meter per day (mmscmd), its CNG volumes were up 7.2% and PNG volumes were up 7.5%.
MGL shares were trading 1.9% up at ₹1,174.9 apiece around 9.25 am on Monday. The stock has gained 11% in the past month and declined 11% in the past year.
Also Read: IREDA shares gain after board approval for ₹2,994 crore QIP
While JPMorgan is 'neutral' on MGL, CLSA has an 'outperform' rating.
JPMorgan
The analyst has a 'neutral' rating on MGL with a target price of 1,270 apiece, an upside of 10% from its previous close of ₹1,152.6 apiece.
It said the company's third quarter earnings beat estimates, driven primarily by lower gas costs, resulting in better-than-expected gross spreads.
It said MGL's volumes were also up 12% from last year, contributing positively to beat.
Its near-term margin risks look limited, although long-term concerns regarding growth still remain, JPMorgan said.
CLSA
CLSA has an 'outperform' rating on MGL with a target price of ₹1,560 per share.
It said the company's third quarter net profit was 4% ahead of estimates due to a beat in both volumes and margins.
Its overall volumes were a 3% beat to estimates, primarily driven by higher CNG demand along with strong annual growth in both, commercial and residential PNG.
It said 12% growth in CNG volume from last year was better than estimates of an 8% increase.
Domestic PNG demand increased by a strong 10% from the year-ago period and 4% sequentially. It was up 2% from estimates, CLSA said.
It added that industrial/commercial volumes increased 14% from last year but declined 3% sequentially.
MGL's profit after tax in the third quarter increased 4.6% to ₹202 crore from ₹193 crore in the previous quarter.
Its revenue was flat at ₹2,048 crore from ₹2,049 crore from the September quarter.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 4% sequentially to ₹351 crore from ₹338 crore.
MGL's operating margin expanded to 17% from 16.4% in the preceding quarter.
Its total volumes increased 9% to 4.5 million metric standard cubic meter per day (mmscmd), its CNG volumes were up 7.2% and PNG volumes were up 7.5%.
MGL shares were trading 1.9% up at ₹1,174.9 apiece around 9.25 am on Monday. The stock has gained 11% in the past month and declined 11% in the past year.
Also Read: IREDA shares gain after board approval for ₹2,994 crore QIP
/images/ppid_a911dc6a-image-177061152533636770.webp)
/images/ppid_a911dc6a-image-177061152393764312.webp)
