ICICI Direct is bullish on Mahanagar Gas has recommended buy rating on the stock with a target price of Rs 1050 in its research report dated May 10, 2019.
ICICI Direct's research report on Mahanagar Gas
Mahanagar Gas (MGL) reported its Q4FY19 results, which were below our estimates on the profitability front on account of lower than expected realisations. Hence, the topline increased 23.2% YoY to Rs 793.2 crore below our estimates of Rs 811.2 crore. Subsequently, the gross margins per scm stood at Rs 13.2/scm and was below our estimates of Rs 14/scm. PAT increased 27.4% YoY to Rs 133.5 crore and came below our estimates of Rs 151.4 crore.
Outlook
However, given the current valuation, we arrive at a target price of Rs 1050 (16x FY21E EPS of Rs 65.6) with a BUY recommendation from a year’s perspective.
For all recommendations report, click here
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