Mahanagar Gas: Buy with a target price of Rs 1306

 CD Equisearch has maintained a "buy" rating on Mahanagar Gas with a revised target price of Rs 1306. The brokerage firm believes that the company's strong financials and growth prospects make it an attractive investment.

Mahanagar Gas is the largest natural gas distribution company in India. It has a monopoly in the Mumbai Metropolitan Region (MMR) and a significant presence in other parts of the country. The company's financials are strong, with a healthy balance sheet and a track record of profitability.

CD Equisearch expects Mahanagar Gas's earnings to grow at a CAGR of 15% over the next few years. The company is likely to benefit from the rising demand for natural gas in India. Additionally, the company is expanding its operations to new areas, which will further boost its growth.

The brokerage firm has factored in the risks of higher trade discounts from oil marketing companies (OMCs) and the increasing competition from electric vehicles (EVs) in its valuation. However, it believes that these risks are manageable and that the company's long-term growth prospects remain strong.

Overall, CD Equisearch believes that Mahanagar Gas is a good investment for investors who are looking for exposure to the natural gas sector. The brokerage firm has a "buy" rating on the stock with a revised target price of Rs 1306.

Key highlights from the article:

• CD Equisearch has maintained a "buy" rating on Mahanagar Gas.
• The brokerage firm has revised its target price for the stock to Rs 1306.
• Mahanagar Gas is the largest natural gas distribution company in India.
• The company has a strong financial track record and is expected to grow at a CAGR of 15% over the next few years.
• The brokerage firm has factored in the risks of higher trade discounts from OMCs and increasing competition from EVs in its valuation.
• Overall, CD Equisearch believes that Mahanagar Gas is a good investment for investors who are looking for exposure to the natural gas sector.