Hold Mahanagar Gas, says Gaurang Shah

Gaurang Shah of Geojit BNP Paribas told CNBC-TV18, "On Mahanagar Gas we had a subscribe recommendation when the initial public offering (IPO) was out a couple of months back and since the listing of the IPO, this one has seen a stellar performance and has given some super phenomenal return as well. With a long-term time horizon, a level of somewhere close to about Rs 850 from where the stock is trading at close to about Rs 870-875 odd will be a great level to average, if not full but at least 50 percent.""One should have a little bit of longish time horizon and this I am only saying it purely from the verbatim that the management had given post the numbers which came out very strong to us and which reinforced our confidence in our conviction. And with that view, they have a monopoly in Maharashtra, especially in Mumbai with the piped natural gas.""And whatever proceeds they have got from the IPO, they are going to utilise for the Capex. This is going to augur well for the company in terms of future growth. So, with a long-term point of view, first of all hold on to it and if you can average, maybe sub-Rs 850 would be a decent level to average at least half the quantity," he said.