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Last Updated : Jan 16, 2020 11:28 AM IST | Source: Moneycontrol.com

Mahanagar Gas shares hit 52-week high after Credit Suisse initiates coverage

Credit Suisse has set a target price of Rs 1,280 for the stock and expects further margin expansion in Q1FY21.

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Shares of Mahanagar Gas jumped over 4 percent to hit their fresh 52-week high of Rs 1,148 on BSE on January 16 after brokerage firm Credit Suisse initiated coverage on the stock with an outperform view.

Credit Suisse has set a target price of Rs 1,280 for the stock and expects further margin expansion in Q1FY21.

"Volume growth should pick up to 5-6 percent CAGR while CNG volumes CAGR is seen at 5 percent and residential PNG at 8 percent," Credit Suisse said.

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The overall volume CAGR is seen at 5-6 percent as CNG is 73 percent of total volumes, Credit Suisse added.

As per the global brokerage firm, the company is aiming to add 90 CNG stations over the next five years and the company should benefit from an addition of 500 new buses by BEST in Q4.

Shares of Mahanagar Gas traded 2.01 percent up at Rs 1,123 on BSE around 11:20 hours IST.

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First Published on Jan 16, 2020 11:28 am
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