Mahanagar Gas Share Price Target: Brokerage sees up to 31% upside for energy stock amid CNG price hike – Markets

Mahanagar Gas Share Price Target: Brokerage sees up to 31% upside for energy stock amid CNG price hike - Markets


Mahanagar Gas Share Price Target: The share price of the fuel company Mahanagar Gas Limited is in focus following a note from domestic brokerage firm Motilal Oswal, which has maintained an optimistic outlook for the company and reiterated an upside for the stock, making it an energy stock to buy in today’s trading session.

The stock has been in the limelight in recent times due to fuel price hikes implemented by the government.

However, the brokerage has maintained a BUY call for the stock and has set a price target of Rs 1,390. The price target implies an upside of 31 per cent from the current price level of the company’s stock.
The share price of the stock settled 1.7 per cent, or Rs 18 lower, at Rs 1,062.20 in the previous session on the BSE. (Mahanagar Gas Share Price)
On the outlook side, Motilal Oswal highlights that the company is witnessing a structural acceleration in D-PNG growth, supported by easing execution bottlenecks.

The brokerage further noted that price hikes and improved realisations in the I&C PNG segment are expected to cushion margin pressure.

MOSL added that valuations appear attractive, leaving room for a re-rating as margin pressures ease. On the volume front, CNG demand is expected to sustain high single-digit growth, aided by vehicle additions and a recovery in bus additions.

Overall, MOSL expects around 9 per cent volume CAGR over FY26–28.

Mahanagar Gas Stock Performance

In the past, Mahanagar Gas Limited has shown mixed performance across different time frames. In the short term, the stock has remained under pressure, declining 1.10 per cent over 1 week and 3.70 per cent over 2 weeks. Over the 1-month period, the stock is down by 4.01 per cent, indicating continued near-term weakness.

In the medium term, performance has been uneven. While the stock has gained 1.33 per cent over 3 months, it has still declined 5.87 per cent year-to-date (YTD) and 5.49 per cent over the past 6 months, reflecting broader volatility.

On a longer horizon, the stock has seen sharper declines. It is down 24.67 per cent over 1 year and 25.19 per cent over 2 years, highlighting sustained pressure over the medium-term trend. However, the stock has delivered positive returns of 3.64 per cent over 3 years, indicating some recovery over a longer cycle.

Over a 5-year period, the stock remains down 13.40 per cent, showing that long-term returns have been relatively weak despite intermittent periods of growth, such as the 13.95 point gain in the 3-month absolute change.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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