City gas distributor shares trade weak; IGL, MGL, Gujarat Gas down up to 6%

On the cost front, CGD companies are expected to incur high gas sourcing costs as spot liquefied natural gas (LNG) prices continue to remain at elevated levels.

Shares of city gas distribution (CGD) companies were under pressure in an otherwise firm market on expectation of weak earnings. Indraprastha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas were down in the range of 5 per cent to 6 per cent on the BSE on Friday. In comparison, the S&P BSE Sensex was up 0.50 per cent at 57,801 points at 11:10 AM.

Analysts at ICICI Securities believe that the sales volume of CGD companies with high compressed natural gas (CNG) contribution will grow around 19 per cent year on year (YoY), while companies with high piped natural gas