Motilal Oswal's research report on Mahanagar Gas
Over the last eight months, MAHGL’s share price has corrected ~30%, with the stock now trading at 11x FY27E P/E. Weakness in the stock price was driven by 1) pressure on margins amid higher raw material costs coupled with multiple APM de-allocations and 2) lack of clarity on future APM allocation. However, we now believe fundamentals are undergoing a transformative shift.
Outlook
MAHGL remains our preferred pick among CGDs. We retain our estimates as we model MAHGL’s volumes to clock a 10% CAGR over FY25-27 and estimate an EBITDA margin of INR10/scm during the period. MAHGL currently trades at 11x FY27E SA P/E. Reiterate BUY with a TP of INR1,760.
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.
