Accumulate Mahanagar Gas; target of Rs 1007: Dolat Capital

Dolat Capital's research report on Mahanagar Gas

MGL reiterates its position as a trusted natural gas supplier, it remains steadfast to further expand and extend green footprints far and wide, taking strides to responsibly fuel India. During the Pandemic MGL strived to ensure that all customers who need natural gas have an uninterrupted access to the same and they have proactively geared itself to sustain its business in this situation and is firmly on the way to recovery towards Pre-Covid levels. While there is ample scope for growing the business of MGL organically in its currently authorized GA’s, they are continuously looking out for inorganic growth opportunities. Favourable regulatory environment, Government’s initiative to replace LPG connections with PNG in urban areas, increased availability of CNG filling facilities, replacement of polluting fuels with natural gas in industrial sector, are likely momentum to in the CGD sector.

Outlook

MGL top priority will be expanding their core operations in the existing license areas of Mumbai and adjoining areas as well as in Raigad district. These areas have large untapped opportunities and offer good potential for long term growth.

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