đ Mahanagar Gas Share Price Rises by 0.15% to Reach 1,414 Rupees on 11 June 2024 đ
After the Short of Lok Sabha elections and the formation of a new government, PSU shares are once again in focus. Positive sentiment is seen regarding government shares post the election results. In this context, shares working in the oil and gas sector are being discussed. One such stock is Mahanagar Gas Limited. Brokerage houses like Jefferies, UBS, Antique, and Motilal Oswal have given buy ratings on this stock.
The public sector company has set a target of 6-7% annual sales growth for the financial year 2025. Recently acquired Unison Enviro Private Limited has achieved a growth of 10% in a short period. This UEPL is a subsidiary of Ashoka Buildcon. The company has stated that including natural gas in GST will be beneficial. The possibility of an increase in the scope of LNG in transportation in the coming years is high. The company is looking to enter the electric mobility sector.
The company was trading at 1,414 rupees on Tuesday (11 June 2024), with a 0.15% increase. The company has set a target of 1,000 crore rupees of capital expenditure in the next financial year. Out of the 1,000 crore rupees, 200 crore rupees will be spent by UEPL. Investment will be made in infrastructure to boost volume growth. A 25 km steel and 200 km polyethylene pipeline will be the basic structure. The company will connect 90 CNG stations. The target is to install over 30 lakh domestic PNG connections, 60 industrial, and 300 commercial connections.
Motilal Oswal has stated that there is a possibility of an annual volume growth rate of 7% in the financial years 2024-26. Increase in the quantity of CNG is possible through the CNG CV promotional scheme. BofA has also said that there will be an overall increase in CNG volume with the CNG CV promotional scheme in terms of range, price, and model options.
UBS, Jefferies, and Motilal have maintained their buying views, with UBS and Jefferies setting a target of 1,600 rupees. Motilal has set a target of 1,565 rupees. BofA has also kept the buy price and set a target price of 1,670 rupees.
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
