Emkay Global Financial's research report on Mahanagar Gas
However, we see this changing for MGL, given Mgmt. focus on stable pricing to boost CNG demand and keeping reasonable margins, acquisition of Unison Enviro improving LT prospects, macros & gas sourcing staying comfortable, and a strong balance sheet. With vol. growth outlook of the peer-set turning volatile and capturing EV risks adequately, MGL—which has logged over 4% volume CAGR (vs pre-Covid) in 9MFY24 (8% growth YoY in Q3FY24)—should see a rerating, as the 6% volume CAGR guidance seems achievable and with earnings now driven by core volume. Our target P/E is ~13x FY26E consol. EPS.
Outlook
We initiate coverage on Mahanagar Gas (MGL) with a BUY and DCF-based TP of Rs1,650. MGL has been trading at lower valuations vs larger peers, due to perceived long-term growth issues in MMR and earnings, mostly fueled by margins.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
