With stake sale overhang behind, Mahanagar Gas could see more gains

Analysts remain positive on the company's earnings driven by soft natural gas prices, volume and geographical expansion

Shares of Mahanagar Gas or MGL gained 7.8 per cent on Tuesday after Shell India sold the final tranche of its 10 per cent stake in the company. A British Gas subsidiary, Shell India along with Gail India (32.5 per cent) held 42.5 per cent in MGL as on end-June 2019. With this latest sale, a major overhang is now behind for the stock which had lost almost 24 per cent since March highs following the stake sale buzz and pressure on broader markets.

The Street’s focus now would shift to fundamentals. A distributor of piped and compressed natural gas