3 Point Analysis | Which gas stocks should you invest in post Q2?

Moneycontrol News

Downstream gas companies have reported mixed performance in the second quarter. IGL reported a strong 27.4 percent year-on-year uptick in its topline owing to healthy 12.9 percent YoY volume uptick. Compressed natural gas (CNG) volumes grew 12.9 percent and the piped natural gas (PNG) segment saw a 13.3 percent YoY volume improvement.

For Mahanagar Gas (MGL), both CNG and PNG volumes saw strong growth of 9.2 percent YoY and 10.2 percent YoY respectively. Around 85 percent of MGLs business is constituted by CNG and domestic PNG, which come under the government's priority allocation umbrella for domestic gas.This works in favour of the company and helps in protecting margins.

Going forward, the company plans to aggressively expand the CNG and PNG segments. Gujarat Gas (GG) saw some hit on the profitability with limited price uptick during the quarter ended September.