Mahanagar Gas Q3 Results: Should you Buy, Sell or Hold the stock post earnings performance

livemint.com:

Mahanagar Gas share price saw gains of more than 2% in morning trades on Monday after the Q3 performance reported by the company on Tuesday. The results came better than expectations led by beat on the margins front. Total sales volumes reported by Mahanagar Gas in the December Quarter at 3.671 mmscmd (million standard cubic meter per day) improved 2.69% sequentially.

The same also grew 7.6% year on year. The CNG (compressed natural gas) volume at 2.6 mmscmd was up 6% year on year and 2% sequential, while overall Piped natural gas (PNG) vols at 1.0 mmscmd were up 11% yoy ( up 5% sequentially) and 3% ahead of estimates . The revenues from operations at ₹1,568.76 crore came comparable It was the earnings before interest tax depreciation and amortisation that at ₹448.7 crore grew 75% year on year.

Also Read- Birlasoft share price jumps ahead of Q3 results today. Buy or sell? Analysts at Jefferies India Pvt ltd said that Mahanagar Gas Q3 Ebitda was 19% ahead of their estimates and 10% ahead of consensus estimates, with gross margins beating estimates on lower feedstock costs while overall volumes were in line with estimates. Analysts at Yes Securities also said that the overall performance was supported by better spreads and volumes (new high across all segments).

EBITDA spreads and volumes came better than their expectations. Mahanagar Gas reported net profit at ₹317.18 Crore that improved sharply from ₹172 crore in the year ago quarter also came 23% above Jefferies Estimates. Analysts at Jefferies said that they will look for management guidance on volume gains post OEM partnership and trajectory of APM shortfall going forward.