US LNG exports surge but will buyers in China turn up?
On Monday, Citi analysts reaffirmed their Buy rating for Mahanagar Gas Limited (MAHGL:IN) stock, maintaining the price target at INR1,700. The decision reflects the company’s positive outlook on volume growth, as management projects a robust compound annual growth rate of over 10% in volume over the next two to three years.
Mahanagar Gas is focusing on expanding its compressed natural gas (CNG) infrastructure and pursuing growth in the industrial segment. The company is also exploring mergers and acquisitions to bolster its market position. These strategic moves are aimed at sustaining growth despite a high base in the fiscal year 2025.
The company benefits from a supply portfolio with approximately 55% oil-linked gas, which is expected to support its EBITDA margin guidance of INR9-11 per standard cubic meter. This composition is seen as a positive factor in maintaining financial stability.
Citi analysts expressed confidence in Mahanagar Gas’s management, citing strong execution over the past two years as a reason for their continued optimism. The brokerage firm continues to favor Mahanagar Gas as its top choice in the city gas distribution sector, reaffirming its Buy rating and price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.