Mahanagar Gas - Remain Positive Amid Government Distractions: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Mahanagar Gas Ltd.’s stock price declined over 15% on March 06, 2024 after Mr. Hardeep Singh Puri, Minister of Petroleum and Natural Gas, said that the full benefits of gas sector reforms have not reached the end user and that city gas distributions are posting strong profits. He also declared the government’s commitment to ensuring the benefits of gas reforms reach end-consumers directly. The market likely believes that the recent compressed natural gas price cut by the company is driven by the minister’s statements about CGDs making high Ebitda/standard cubic metre margins. We believe that the current stock price correction is partly an overreaction and partly driven by profit-booking following the strong run-up in the last six months. We believe that the current weakness is a good opportunity to buy a franchise with decent volume growth visibility at reasonable valuations. We remain positive on Mahanagar Gas and retain our 'Buy' rating..Click on the attachment to read the full report:.Cement Prices Declined; However, Demand Was Healthy: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahanagar Gas - Remain Positive Amid Government Distractions: Motilal Oswal

We believe it is premature to infer that the government will regulate either pricing or returns in the CGD sector

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