Buy: Mahanagar Gas; Share price: 972. Target 1020, 1120 and 1240. SL 850. Add more on dips towards 920-940. 3 months- 6 months.
Stock trades at 4x book value and 12x PE.
Stock can easily move towards 5-6x book and 18x PE ~ 1350-1400 in a year.
Technically stock has also given a strong break above 950.
Mahanagar Gas Limited, (MGL), one of the India’s leading Natural Gas Distribution Companies was incorporated on 8 May 1995. MGL is an enterprise of GAIL (India) Limited (Maharatna Company of Govt. of India) and Government of Maharashtra.
MGL connects 1.2 million households as well as over 4000 small commercial and industrial establishments. They also supplies CNG to more than 700,000 vehicles in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond. Besides 3342 ST/TMT/MSRTC/NMMT/ PMPML buses, more than 6580 /Tempos/Trucks/Private buses are using CNG supplied through its wide distribution network. Consisting of about 450 km (280 mi) steel and over 470 km (290 mi) PE Pipeline over 250 CNG stations through 1268 dispensing points.
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