Mahanagar Gas Limited (MGL) shares jumped 3% following its Q3 FY25 earnings. Despite a 20.1% sequential decline in standalone net profit to ₹225.4 crore for the October-December period, investor sentiment remained positive.
The company’s revenue for Q3 stood at ₹1,758 crore, slightly higher than ₹1,711.6 crore in the previous quarter. However, EBITDA fell 21.2% quarter-on-quarter to ₹314 crore, with margins contracting 510 basis points to 17.9%.
MGL also announced an interim dividend of ₹12 per equity share, with a record date of February 3. The payout will be made within 30 days from the declaration date.
Mahanagar Gas Limited’s shares opened at ₹1,285.10, with a high of ₹1,327.95 and a low of ₹1,273.00. The stock’s 52-week high stands at ₹1,988.00, while the 52-week low is ₹1,075.25. As of 9:13 AM, the shares were trading 2.95% higher at Rs 1,315.60.
In the meantime, CLSA has reaffirmed its ‘Outperform’ rating on Mahanagar Gas Limited (MGL) and set a target price of ₹1,710, representing a potential upside of 34.1% from the current market price of ₹1,275.10. The brokerage noted a positive margin surprise in Q3FY25, which led to a profit after tax (PAT) beat.
MGL’s volumes remained in line with expectations, reflecting strong and steady demand. The company’s ability to offset higher depreciation and interest costs with lower tax expenses further boosted its earnings performance. CLSA’s optimistic outlook is supported by these key factors, making MGL a strong investment opportunity.
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