Mahanagar Gas was up 2.23% to Rs 803 at 11:37 IST on BSE after the company in association with Eco Fuel announced the launch of CNG fueled two-wheelers in Mumbai.
The announcement was made yesterday, 1 January 2017.Meanwhile, the S&P BSE Sensex was down 131.43 points or 0.49% at 26,495.03.
On the BSE, 22,000 shares were traded on the counter so far as against the average daily volumes of 60,640 shares in the past one quarter. The stock had hit a high of Rs 814 and a low of Rs 789.40 so far during the day.
The stock had hit a record high of Rs 899 on 28 November 2016 and a record low of Rs 493.20 on 13 July 2016. It had outperformed the market over the past one month till 30 December 2016, advancing 2.01% compared with the Sensex's 0.1% fall. The scrip had also outperformed the market over the past one quarter gaining 18.94% as against the Sensex's 4.45% fall.
The mid-cap company has equity capital of Rs 98.78 crore. Face value per share is Rs 10.
Mahanagar Gas said that the company in association with Eco Fuel (Indian Partners of Lovato, Italy) launched CNG fueled two-wheelers thus enabling them to run on safe and economical fuel, further contributing to a pollution free environment.
Commenting on the development, Union Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan said that the launch of CNG fueled two wheelers will give an opportunity to more than 36 lakhs two wheelers running in the Mumbai Metropolitan Region (MMR) to opt for this eco-friendly fuel. In the last few years CNG powered vehicles have grown in MMR at a compound annual growth rate (CAGR) of over 70% given the fuel economics and eco-friendly nature of CNG.
The CNG kit for two wheelers comprises of two CNG cylinders of 1.2 kg each, which can run up to 120 to 130 km per kg at an approximate cost of Rs 0.60 per km per single fill and is expected to be substantially economical as compared to a similar petrol run vehicle at the current level of prices as per the kit manufacturer. In the initial phase, the scooters shall be retrofitted with a CNG kit manufactured by Lovato.
Presently two kit manufacturers namely ITUK & Lovato have got two-wheeler CNG kits approved by ARAI, Pune and ICAT Gurgaon respectively. Lovato has got approval for 18 scooter models of various original equipment manufacturers (OEMs) present in the market. Considering the huge potential of this segment other kit manufacturers are also planning to launch their two-wheeler kits, Mahanagar Gas said.
Mahanagar Gas' net profit rose 40.9% to Rs 102.24 crore on 3.5% decline in net sales to Rs 518.05 crore in Q2 September 2016 over Q2 September 2015.
Mahanagar Gas (MGL) is one of India's leading natural gas distribution companies. MGL is a joint venture between GAIL (India) and BGAPH (a subsidiary of Royal Dutch Shell Plc).
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
