Mahanagar Gas zooms 128% since listing

The stock hit a new high of Rs 1,184, appreciated by 128% from Rs 520, against 18% rise in the Nifty 50 index since July 1, 2016

Mahanagar Gas Limited (MGL) hit a new high of Rs 1,184 on Tuesday, has been more than doubled since its listing in July last year.

Since July 1, 2016, the stock appreciated by 128% from Rs 520, against 18% rise in the Nifty 50 index. It zoomed 181% against its initial public offer (IPO) price of Rs 421 per share.

MGL has declared total dividend of Rs 36.50 per share to its shareholders in past one year.

“The city gas distribution (CGD) sector has benefited in a significant manner from the government’s decision to prioritise the allocation of domestic natural gas for compressed natural gas (CNG) and domestic piped natural gas (PNG) customers. This has enabled MGL to access cheaper gas for CNG and domestic business segments, constituting around 86% of total sales volume,” according to analysts at ICICI Securities.

“MGL’s strong gas pipeline infrastructure and expanding operations in Mumbai, its adjoining areas and Raigad district will enable the company to capture the benefits of the large and growing market given the low penetration,” the brokerage firm said in result update.