Mahanagar Gas rose 2.86% to Rs 1,132.30 after a foreign brokerage reportedly initiated coverage on the stock with an outperform rating.
According to reports, the brokerage has set a target price of Rs 1,280 for the stock and expects further margin expansion in Q1 June 2020. The company is aiming to add 90 CNG stations over the next five years and the company should benefit from an addition of 500 new buses by BEST in Q4, it added.
The Mahanagar Gas stock hit a high of Rs 1148 in early trade today, which is also 52-week high for the counter.
The stock has grown 12.67% in three consecutive trading sessions from its recent closing low of Rs 1,004.95 since Monday, 13 January 2020. The scrip is up 8.76% in the past one month.
Its RSI (relative strength index) stood at 72.050. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
On a standalone basis, Mahanagar Gas' net profit jumped 98.6% to Rs 270.62 crore on 12.5% rise in net sales to Rs 783.58 crore in Q2 September 2019 over Q2 September 2018. It will announce Q3 earnings on 7 February 2020.
Mahanagar Gas has sole authorisation to distribute compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and the Raigad district in the state of Maharashtra, India.
The Government of Maharashtra holds 10% stake in the natural gas company.
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