Buy Mahanagar Gas, target price Rs 1230: Yes Securities

Yes Securities has buy call on with a target price of Rs 1230. The current market price of Mahanagar Gas Ltd. is Rs 1160.7.

Mahanagar Gas Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 11467.61 Crore) operating in Gas & Petroleum sector.

Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 686.79 Crore, up 21.05 % from last quarter Total Income of Rs 567.38 Crore and down -18.98 % from last year same quarter Total Income of Rs 847.64 Crore. Company reported net profit after tax of Rs 217.21 Crore in latest quarter.

Investment Rationale
After losing 14% from the recent high, bulls outstripped bear near Rs 1,100 zone and recovery thereafter was swift, suggesting an immediate floor near Rs 1,110. Sustenance above the same could keep the near-term outlook positive.

Promoter/FII Holdings
Promoters held 46.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 19 per cent, DIIs 21.4 per cent and public and other 12.8 per cent.