MGL, Gujarat Gas: Analysts see some silver lining for downstream gas stocks

Analysts have lowered their earnings estimates, but have 'buy' recommendations for several stocks

The downstream gas market has seen turmoil and volatility since the Ukraine stand-off. Prices started rising in the second half of 2021-22 (FY22), and fears of major supply disruptions affected the market since February.
 
The administered prices of domestic gas — tied to overseas prices — reflect that volatility, with a hike from $2.9 per metric million British thermal unit, or mmBtu (October 2021-March 2022 period) to $6.1 per mmBtu (April 2022-September 2022).
 
However, gas is a necessary good, which means that a proportion of demand is not price-dependent. While the ceramic industry in Gujarat has shut