Mahanagar Gas - Robust Volume Growth Outlook: HDFC Securities

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..HDFC Securities Institutional Equities.Mahanagar Gas Ltd. stock rallied ~26% over the last six months and outperformed Sensex by ~19%. We expect this outperformance to sustain, driven by-a pickup in volume growth androbust margins. The recent Vahan data continues to support our investment thesis with FY24 year-to-date data suggesting a strong trend in new CNG vehicle registrations in Mahanagar Gas’ geographical areas which should outpace new CNG vehicle registrations seen in FY23. The company cut CNG price in Oct-23 by Rs 3/kg which should help pick up CNG vehicle registrations too. Mahanagar Gas’ acquisition of Unison Enviro Pvt. Ltd. three GAs should also add to its overall volume growth. At the current price, Mahanagar Gas’ valuation is at 11.3 times Mar-25E earnings per share, a ~10% discount to its five-year average multiple of 12.5 times despite a better volume growth outlook. Mahanagar Gas’ valuation still remains attractive as current market price factors only 4.3% volume growth. We, therefore, reiterate our 'Buy' recommendation on Mahanagar Gas with a target price of Rs 1,535/share..Click on the attachment to read the full report:.Galaxy Surfactants - Robust Volume Growth Subject To Macroeconomic Stability: 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 - Robust Volume Growth Outlook: HDFC Securities

Mahanagar Gas’ valuation still remains attractive as current market price factors only 4.3% volume growth

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