Mahanagar Gas Ltd (MGL) shares gained 3% in early trade after Japan-based brokerage firm Nomura upgraded the stock to ‘Buy’ from ‘Neutral’ and raised its target price to ₹1,680 from ₹1,345. The upgrade positions MGL as Nomura’s top pick among city gas distribution (CGD) companies. As of 9:45 AM, the shares were trading 1.42% higher at Rs 1,409.50.
According to Nomura, MGL offers the highest expected volume growth among peers, limited exposure to the volatile industrial and commercial (I&C) segment, and trades at an attractive valuation. The brokerage also believes MGL is better positioned than its peers, such as Indraprastha Gas Ltd (IGL), in navigating electric vehicle (EV)-related regulatory risks.
The bullish stance reflects strong confidence in MGL’s growth trajectory and operational stability in a dynamic energy landscape.
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