Mahangar Gas rises 6.5% as management iterated growth guidance; Brokerages maintain rating and target price

financialexpress.com:

Shares of Mahanagr Gas (MGL) rose 6.5% to an intraday high after the company’s management stood confident on its FY25 guidance of 6-7% year-on-year growth. 

The brokerage firm BoFA Securities retained its “Buy” rating on the stock of MGL with an unchanged target price of Rs 1,670 a piece. UBS, a brokerage firm has a “Buy” rating on the stock and kept the target price unchanged at Rs 1600 citing that the company is investing in infrastructure to drive volume growth. It also said that the company will benefit from natural gas getting included under GST. The company also forayed into electric mobility is also one of the reasons behind the maintained rating and target price. 

Another broking firm Motilal Oswal iterated a “Buy” rating and Rs 1565 as the target price after the company stood on its guidance of 6-7% growth target in FY25, out of which 10% volume growth from recently acquired UEPL. Further, MGL guided a capital expenditure of Rs 10 billion for FY25. 

The stock of MGL has risen almost 5% in the past five days and over 17% in the last six months. The scrip has delivered a return of around 15% from year to date. It raised the investors’ wealth by over 35% in the past year. 

To compare, the benchmark index Nifty 50 has risen 3.5% in the last five days and 11% in the past six months. The index has given a return of over 7% from year to date. It has risen more than 25% in the past year.