IGL vs MGL: Which gas stock should you choose for long-term? Here's a 5-point analysis
Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL) declared their January-March quarter results for fiscal 2023-24 (Q4FY24) this month and have received bullish-to-neutral rating from domestic brokerage firms. Earlier this year, the CGDs announced a reduction in their respective compressed natural gas (CNG) prices across all locations.MGL, the city gas operator in Mumbai and its adjoining areas, announced a ₹2.5 per kg reduction in the CNG price on March 6.
Accordingly, the revised CNG price will be ₹73.50 per kg. The reductions followed a softening in input gas prices."MGL's CNG price now offers attractive savings of 53 per cent compared to petrol and 22 per cent compared to diesel at current price levels in Mumbai while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers," the CGD said in a statement on March 5.IGL announced a similar price reduction in Delhi and the adjoining cities a day later.
"The retail consumer price of CNG is being reduced by ₹2.50 per kg across all geographical areas of IGL from 6 am on Thursday, 7th March 2024. The revised selling price of CNG in Delhi shall be ₹74.09 per kg, while it shall be ₹78.70 per kg in Noida, Greater Noida and Ghaziabad,'' said IGL.
IGL has underperformed the domestic benchmarks Nifty 50 and Sensex this year. In the last six months, IGL has provided 16.65 per cent returns on investments, however, in the last one year, the returns are negative to the tune of 5.07 per cent, compared to Nifty 50's 25.41 per cent and Sensex's 21.71 per cent returns.On Thursday, shares of IGL settled 2.92 per cent higher at ₹454.20, against a 52-week high of ₹501.35 apiece on the BSE.
