Mahanagar Gas Gets 26% Additional APM Allocation From GAIL
Shares of Mahanagar Gas closed 1.45% higher at Rs 1,270.65 apiece on the National Stock Exchange, compared to a 0.69% fall in the benchmark Nifty.
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Mahanagar Gas Ltd. has secured increase in domestic gas allocation at APM prices from GAIL (India) Ltd. by 26%, effective Jan. 16.
As a result, allocation for compressed natural gas will increase from 37% to 51%, according to an exchange filing by MGL on Thursday.
Adani Total Gas Ltd. has also been informed by GAIL that the allocation of APM gas would be increased by 20% from Jan. 16.
MGL Q2 Performance
MGL reported a revenue of Rs 1,786.3 crore, representing a 7.1% growth for the quarter ended Sept. 30, 2024, for the current fiscal as compared to Rs 1,665.8 crore for the same period last year. The gas provider's net profit dipped 2% to Rs 283.5 crore for the July- September quarter as against Rs 288.8 crore for the year ago period.
Its earnings before interest, tax, depreciation and amortisation slipped to Rs 413.4 crore, posting a 5% fall for the second quarter as contrast to Rs 436.8 crore for the same quarter in the last fiscal. The margin contracted to 23.1% for the second quarter as compared to 26.2% for the same period last year.
Shares of MGL closed 1.45% higher at Rs 1,270.65 apiece on the National Stock Exchange before the announcement, compared to a 0.69% fall in the benchmark Nifty. The share price has risen 6.04% in the last 12 months.
Out of 32 analysts tracking the company, 14 maintain a 'buy' rating on the stock, six recommend 'hold' and 12 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 14.3%.
Correction: In headline and lede.
