MGL shares jump over 3% after Morgan Stanley initiates ‘Overweight’ call

Mahanagar Gas Ltd (MGL) shares surged over 3% on January 14, trading at ₹1,268.60 following a bullish outlook from Morgan Stanley. The brokerage initiated an ‘Overweight’ rating on the stock, setting a target price of ₹1,606, implying a potential upside of 30%.

Key Highlights:

  • Morgan Stanley’s View: The brokerage emphasized MGL’s critical role in Mumbai’s increasing adoption of natural gas as a primary energy source. It referred to this transition as a “Tesla-like moment” for the city and MGL in terms of gas adoption.
  • Growth Catalysts: Rising travel and energy demand in Mumbai, coupled with structural volume growth in natural gas consumption, are seen as key factors driving MGL’s long-term potential.
  • Global Gas Market Outlook: While the global gas market is expected to remain balanced in 2025, Morgan Stanley predicts an oversupplied scenario by 2027. Despite MGL sourcing 20% of its gas via LNG, which may impact margins, the firm views volume growth as the primary re-rating trigger.

Mahanagar Gas Share Price history

Day Open Close Change %
Mon, Jan 13 2025
₹1,278.05
₹1,227.65
-4.54%
Fri, Jan 10 2025
₹1,295.00
₹1,286.10
+1.22%
Thu, Jan 9 2025
₹1,255.00
₹1,270.65
+1.45%
Wed, Jan 8 2025
₹1,236.10
₹1,252.55
+0.61%
Tue, Jan 7 2025
₹1,274.50
₹1,244.90
-2.32%
Mon, Jan 6 2025
₹1,324.95
₹1,274.50
-2.92%
Fri, Jan 3 2025
₹1,291.95
₹1,312.85
+1.29%
Thu, Jan 2 2025
₹1,281.75
₹1,296.10
+1.08%

 

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