Mar'25 View on Mahanagar Gas Ltd

Mahanagar Gas Ltd is engaged in the business of City gas distribution (CGD), presently supplying natural gas in the city of Mumbai including adjoining areas and the Raigad District in the state of Maharashtra. After falling from high of 2000 and then making low near 1,080, the stock has risen to 1,400 level and looks for further upside on back of the following • MGL’s Q3 EBITDA (down 30% yoy, 21% qoq) was 4% ahead of our estimates. • Overall volumes of 41.2 cr mscmd (up 12% yoy, 2% qoq) were in line. • CNG volumes (29.2 cr mscmd, +11% yoy, 1.2 qoq, in line) were strong. • PNG volumes (12 cr mscmd, +15% yoy, 3.5% qoq) were 1.6% ahead of KIE. • Q3FY25 marginally ahead, but weak; volumes good, but focus on margins. • Volume growth is positive for longer term (most customers are sticky).