Mahanagar Gas shares rise 3% after UBS raises target price by 50%
Shares of Mahanagar Gas Limited (MGL) saw a 3% rise after UBS reaffirmed its “Buy” rating on the company. UBS also increased its target price to ₹2,400, a significant 50% jump from the previous target of ₹1,600, reflecting the brokerage’s positive outlook on MGL’s future growth.
UBS raised its projections for MGL’s volume growth by 7-11% for FY25-27, driven by expectations of both organic and inorganic growth. The brokerage also increased its estimates for MGL’s earnings before interest, tax, depreciation, and amortization (EBITDA) per standard cubic meter, anticipating it to reach ₹12.1-12.3 per scm.
MGL’s continued focus on expanding its CNG fleet and developing infrastructure were highlighted as key factors for the expected growth. UBS also noted that potential mergers and acquisitions could offer further upside for the company, which are not yet factored into the current price.
As of 9:25 am, MGL shares were trading 2.82% higher at ₹1,872.70 on the NSE.
