Mahanagar Gas hits new high; stock up over 100% against IPO issue price
The stock was up 3% at Rs 850 on NSE, gaining 102% against IPO price of Rs 421 per share
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Mahanagar Gas (MGL) hit a new high of Rs 850, up 3% on the National Stock Exchange (NSE), gaining more than 100% against its initial public offer (IPO) price.
MGL, a Mumbai-based city gas distribution (CGD) company, was up 102% against its issue price of Rs 421 per share. The stock was trading at its highest level since listing in July 1, 2016.
In past three trading sessions, the stock rallied 8% after MGL in association with Eco Fuel announced the launch of CNG fueled two-wheelers in Mumbai. The Nifty 50 index was up 0.20% during the same period.
Analyst at IIFL Wealth Management maintains ‘buy’ rating on the stock with target price of Rs 950.
“MGL is well poised to achieve strong volume growth in both CNG and PNG on back of its eco-friendly value prop, lower gas prices and high level of under penetration. Cash generation will remain healthy, allowing MGL to maintain its dividend payout ratio of 50%+ and look for inorganic growth opportunities,” analysts said in recent report.
“The management expects its monopoly stance to continue, inspite of new PNGRB regulations on marketing exclusivity. The company also continues to maintain its zero debt and healthy margins position. Given the strong demand for natural gas, government support for the sector and lower natural gas prices, we expect MGL to continue its strong performance,” according to analyst at Karvy Stock Broking.
At 09:56 am; the stock was trading at Rs 847 on the NSE against 0.23% rise in the benchmark index. A combined 202,645 shares changed hands on the counter on the NSE and BSE so far.
MGL, a Mumbai-based city gas distribution (CGD) company, was up 102% against its issue price of Rs 421 per share. The stock was trading at its highest level since listing in July 1, 2016.
In past three trading sessions, the stock rallied 8% after MGL in association with Eco Fuel announced the launch of CNG fueled two-wheelers in Mumbai. The Nifty 50 index was up 0.20% during the same period.
Analyst at IIFL Wealth Management maintains ‘buy’ rating on the stock with target price of Rs 950.
“MGL is well poised to achieve strong volume growth in both CNG and PNG on back of its eco-friendly value prop, lower gas prices and high level of under penetration. Cash generation will remain healthy, allowing MGL to maintain its dividend payout ratio of 50%+ and look for inorganic growth opportunities,” analysts said in recent report.
“The management expects its monopoly stance to continue, inspite of new PNGRB regulations on marketing exclusivity. The company also continues to maintain its zero debt and healthy margins position. Given the strong demand for natural gas, government support for the sector and lower natural gas prices, we expect MGL to continue its strong performance,” according to analyst at Karvy Stock Broking.
At 09:56 am; the stock was trading at Rs 847 on the NSE against 0.23% rise in the benchmark index. A combined 202,645 shares changed hands on the counter on the NSE and BSE so far.