Macquarie has also maintained its ‘Outperform’ rating on MGL but with a lower target price of ₹1,280, suggesting a 0.4% upside from the current levels. The brokerage noted that earnings were largely in line with expectations, though margins missed estimates.
Macquarie remains optimistic about long-term volume growth, projecting an 8% CAGR in volumes from FY24-27. The firm also believes that the current margin decline is already priced in, leaving room for potential upside if operational efficiencies improve.
However, the brokerage cautioned that rising input gas prices and potential further cuts in APM gas allocations pose risks to MGL’s performance.
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