Archive · 9 Jun 2025
Motilal Oswal: Mahanagar Gas Stock Could Rally 30%
Motilal Oswal, a financial company, thinks shares of Mahanagar Gas (MGL) could go up about 30%.
They believe MGL will sell more gas, especially between 2025 and 2027.
Motilal Oswal also thinks that MGL's new ventures, such as battery manufacturing and LNG, will help it make more money.
Moreover, they predict that because oil prices might stay low and natural gas prices will be cheaper, it will cost MGL less to get natural gas.
Finally, they also think recent price changes for CNG and PNG are helping.
Motilal Oswal reiterated a 'Buy' rating on Mahanagar Gas, targeting a 30% upside.
Motilal Oswal expects a 10% compounded volume growth between FY25-FY27.
The brokerage firm anticipates earnings boosts from ventures into battery manufacturing, LNG, and CBG.
A weak crude price outlook and lower natural gas pricing will reduce gas costs for CGD companies.
Motilal Oswal cites recent CNG and D-PNG price hikes as supportive of the higher target.
- Who
- Motilal Oswal (brokerage firm) and Mahanagar Gas.
- What
- Motilal Oswal expects a 30% rally in Mahanagar Gas stock.
- When
- Over the next 12 months (implied).
- Where
- N/A
- Why
- Motilal Oswal believes this will be driven by volume growth and reduced gas costs.
- Target Price
- Rs 1,760
- Upside Potential
- 30%
- Volume Growth Expectation
- 10% (FY25-FY27)
- Expected Average Brent Crude Price
- $65/bbl (FY26/FY27)
- Current Trading Multiple
- 11x FY27 EPS