Mahanagar Gas Ltd (MGL) and Indraprastha Gas Ltd (IGL) witnessed a rise in their shares, driven by robust growth in CNG vehicle registrations across India in October 2024. According to a Citi report, Pan-India CNG vehicle registrations surged by 69% month-on-month (m/m) and 45% year-on-year (y/y), reflecting increasing consumer interest in CNG vehicles due to their cost efficiency and environmental benefits. This favorable trend provides a supportive backdrop for MGL and IGL, indicating potential revenue growth for both companies.
Regional Growth for IGL and MGL
In the areas where IGL and MGL primarily operate, CNG vehicle registrations showed remarkable growth. IGL’s region saw a 40% m/m and 55% y/y increase, while MGL’s area recorded a 60% m/m and 47% y/y rise. This regional demand highlights strong consumer interest in these areas, enhancing the companies’ growth prospects and paving the way for further expansion.
Projected Volume Growth for FY25
The Citi report also forecasts a 9-10% expansion in the CNG vehicle base (excluding two-wheelers) for IGL and MGL in FY25, which is expected to sustain their volume growth. This anticipated growth positions both companies well to capitalize on India’s growing shift toward CNG as a cleaner, cost-effective fuel option.
With this positive trajectory in CNG adoption, IGL and MGL are likely to continue benefiting from India’s push for sustainable fuel alternatives, solidifying their roles as key players in the country’s energy transition.
