Priyanka Tiwari
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Suspense crime, Digital Desk : Financial services firm Motilal Oswal has expressed a positive outlook on the state-owned gas utility, Mahanagar Gas (MGL), issuing a "Buy" recommendation for its stock. The brokerage has set a target price of ₹1,510 per share.
Based on the stock's recent closing price of approximately ₹1,304, this target represents a potential upside of around 16%, or ₹206 per share, for investors. This recommendation comes despite a recent dip in the stock's value, which has seen a slight decline over the past month.
The rationale behind Motilal Oswal's bullish stance is rooted in several key factors. The firm anticipates a significant improvement in MGL's sales volumes, driven by a strategic focus on expanding its industrial and commercial customer base. The brokerage forecasts that the company's volumes will grow at a Compound Annual Growth Rate (CAGR) of 6% between fiscal years 2024 and 2026.
Furthermore, Motilal Oswal highlighted that the company's margin guidance remains stable and its current valuation is attractive, presenting a favorable entry point for investors. While the stock has seen short-term volatility, it has delivered a return of over 21% in the last six months, underscoring its underlying strength. The brokerage's report suggests that the current market price does not fully reflect the company's growth potential, making it a compelling investment opportunity.
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