Morgan Stanley has reiterated its overweight rating on Mahanagar Gas Limited (MGL) with a target price of ₹1,606, implying a 24% upside from the current market price (₹1,293.80). Key highlights from the report include:

  1. Positive outlook: Share price expected to rise in absolute terms over the next 30 days.
  2. Growth drivers: Play on increasing miles traveled in Mumbai and strong performance of four-wheeler CNG conversions.
  3. Financial strength: Projects a 6% EPS CAGR for FY25-FY28 and a sustainable RoCE of 16%.
  4. Risk-reward profile: Sees an attractive risk-reward balance for investors.

Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.

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