Today, we recommend two stocks, one from the oil & gas sector and another from the port sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 34%. India is the 3rd largest energy consumer in the world after China and the US. Despite this, India’s per capita energy consumption is one-third of the global average, indicating potentially higher energy demand in the long term.
Meanwhile, India’s ports and port services sector is a key driver of economic growth, serving as a critical link in international trade, logistics, and regional development. We also analyzed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
1. Mahanagar Gas Ltd (MGL)
- Current price: ₹ 1,298
- Target price: ₹ 1,750
- Upside: 34.82%
- Time frame: 16-24 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Mahanagar Gas Limited is one of the leading City Gas Distribution (CGD) companies in India, which was established in 1995. It provides a comprehensive range of services to fulfill the diverse demands of its customers in the Geographical Areas (GAs) in which it operates. Its infrastructure, which includes more than 7,539 km of pipeline and 385 CNG stations, serves more than 2.85 million PNG households and 1.13 million CNG vehicle users, as of Q1FY26.
Over the last 30 years, MGL has been crucial in developing gas infrastructure and promoting gas use among various consumers in the Mumbai Metropolitan Region (MMR), which includes Mumbai, Urban Thane, Navi Mumbai, Kalyan, and other areas. It also expanded into Karnataka through its acquisition of UEPL. It serves around 14.03 lakh domestic households in GA 1, ie, Mumbai, and 13.5 lakh domestic households in GA 2, i.e, Thane.
On a consolidated basis, revenue from operations for Q1FY26 was Rs 2,282.07 crore, up 24.56% from Rs 1,832.15 crore in Q1FY25. Since FY21, it has been growing at a 34% CAGR. Standalone EBITDA was Rs 485.36 crore, while standalone gross profit was Rs 739.55 crore. On a standalone basis, the gross margin was Rs 19.22/SCM, which was more than the Q1FY25 gross margin of Rs 17.94/SCM. The average sales realization was Rs 51.34/SCM in Q1FY26, higher than Rs 45.27/SCM in Q1FY25.
PAT on a consolidated basis stood at Rs 317.79 crore, up by 10.05%. In Q1FY26, CNG contributes 70% of the total sales volume, whereas DPNG contributes 13.45%. During Q1FY26, 16,348 domestic households were connected, whereas the company laid 79.08 kilometers of steel and PE pipeline. It also added 84 industrial and commercial customers, as well as 20,332 CNG vehicles during this quarter.
The company’s objective is to increase the number of PNG and CNG customers in every location. As more OEMs get ready to launch CNG-based vehicles, the market share of CNG will increase. The company plans to invest about Rs 1,100-1,300 crore in MGL’s subsidiary, UEPL, in the next 2 years. The company is planning to add 80 more CNG stations in FY26.
There are plans to build 180 km of steel pipeline and 250 CNG filling stations in the next five years. The company is expanding into several energy-related subsegments and has made several acquisitions and collaborations to diversify into new markets or strengthen its existing ones. The company has set up a joint venture with IBC for setting up a 1 GW battery cell manufacturing plant. The first phase is going to be completed by around April to June of 2027.
Moreover, in the next 5 years, India plans to invest USD 67 billion in the natural gas sector, aiming to increase its contribution to India’s energy basket from 8% to 15% by 2030. Moreover, India is planning to increase CNG stations to 17,500 from 7,000 and 12 crore DPNG connections from 1.29 crore by 2030.
Risk Factor
Volatility in gas prices and regulatory interventions, such as capping of fuel prices, pose a threat as they reduce the arbitrage between fuels like CNG-diesel and DPNG-LPG. The implementation of the company’s projects is generally affected by the delays caused by prolonged authorisation processes. Additionally, it is challenging for the company to set up new CNG stations in its operational locations due to high prices and a shortage of suitable land.
2. Gujarat Pipavav Port Ltd
- Current price: ₹ 151.79
- Target price: ₹ 185
- Upside: 21.7%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Gujarat Pipavav Port Ltd. (GPPL), established in 1992, operates Pipavav Port, India’s first private sector port. The company is a part of APM Terminals, one of the world’s leading container terminal operators. GPPL handles a diverse range of cargo, including containers, dry bulk, liquid bulk, and roll-on/roll-off (RORO). Its service offerings span quay and marine operations, crane and engineering services, low-carbon logistics initiatives, storage and warehousing, and sales of used port equipment.
In FY25, the company reported revenue of Rs 988 crore, broadly unchanged from Rs 987.6 crore in FY24. Despite the flat annual growth, revenue has increased at a compound annual growth rate (CAGR) of 10% over the past three years. Net profit rose by 16%, from Rs 342 crore in FY24 to Rs 397 crore in FY25, marking a strong CAGR of 26% over the same three-year period. For FY26, the company expects to maintain healthy EBITDA margins in the range of 60% to 61%. The company is also expanding its LPG handling capacity, which is expected to further boost traffic at the port.
In Q1 FY26, the company reported a 2% year-on-year (YoY) increase in revenue, rising from Rs 245.98 crore in Q1 FY25 to Rs 250.45 crore. This modest growth was driven by a 21% increase in the liquid business and an 11% rise in the Roll-on/roll-off (RORO) segment. EBITDA for the quarter stood at Rs 148.1 crore, reflecting a healthy margin of 59%. The net profit for the period came in at Rs 104.3 crore.
Operationally, the company handled 4,16,817 metric tonnes (MT) of liquid cargo, up 21% YoY, while the RORO segment saw an 11% increase in volume, reaching 42,690 vehicles. Container volumes were flat at 1,64,184 TEUs, and dry bulk volumes remained stable at 5,56,904 MT. Looking ahead, the management anticipates a subdued performance in the Container segment in FY26 due to ongoing geopolitical tensions and trade tariff uncertainties. Dry bulk volumes are also expected to remain flat year-over-year. However, the liquid and RORO segments are projected to grow by 20% and 25%, respectively, during the year. Overall, EBIT is expected to grow by 5-7% in FY26.
Risk factor
Gujarat Pipavav Port Ltd. faces competitive pressure from larger domestic ports such as Adani Ports & SEZ Ltd. and Jawaharlal Nehru Port Trust, which have wider operational reach and attract substantial traffic from surrounding industrial regions and trade routes. Additionally, escalating geopolitical tensions and uncertainty around global trade tariffs may negatively impact GPPL’s container and dry bulk cargo volumes, posing a risk to its overall cargo traffic and revenue stability.
Market Recap 11/09/2025
On Thursday, the Nifty 50 opened on a slightly bearish note at 24,945.5, down by 27.6 points from its previous close of 24,973.10. However, the index quickly reclaimed the 25,000 mark, hitting an intraday high of 25,037.3 before closing the day at 25,005.5. This marked a gain of 32.4 points, or 0.13%. Technically, the index closed above all four key exponential moving averages (20/50/100/200-day) on the daily chart.
The BSE Sensex mirrored this movement, opening lower at 81,217.3, a drop of 207.85 points from the previous close of 81,425.15. It recovered through the session to close at 81,548.73, gaining 123.58 points, or 0.15%. Market sentiment remained positive, buoyed by investor optimism over a potential US Federal Reserve rate cut and easing trade tensions between the US and India.
Momentum indicators showed moderate strength, with the Nifty 50’s Relative Strength Index (RSI) at 57.79 and the Sensex RSI at 56, both comfortably below the overbought threshold of 70. The Bank Nifty Index also ended in the green, climbing 133.6 points, or 0.24%, to settle at 54,669.6.
Most sectoral indices ended higher on Thursday, with only a few closing in the red. Leading the pack for the second consecutive session was the Nifty Oil & Gas Index, which rose 120.4 points, or 1.1%, to close at 11,086.55. Gujarat State Petronet Ltd surged 3.5%, while other oil & gas names such as GAIL India Ltd, Indian Oil Corporation, and Aegis Logistics Ltd posted gains of up to 3%.
The Nifty Media Index followed, finishing at 1,627.45 with a gain of 16.5 points, or 1%. Dish TV Ltd emerged as the top performer in the sector, rising 4.3%, while Zee Entertainment climbed 2%, and DB Corp Ltd advanced 1.9%. The Nifty PSE Index also registered strong performance, closing at 9,590.7, up 92.95 points, or 1%.
On the downside, the Nifty IT Index was the biggest loser of the session, ending at 36,003.5, down 180.3 points, or 0.5%. Infosys Ltd led the decline, falling 1.5%, while Mphasis Ltd, Oracle Financial Services Software Ltd, and Wipro Ltd slipped up to 1.5%. The Nifty Auto Index also closed lower at 26,744.45, down 89.50 points, or 0.3%. Key laggards included Bajaj Auto Ltd, Eicher Motors Ltd, Hero MotoCorp Ltd, and Bosch Ltd, which lost up to 1.4%. The Nifty Consumer Durables Index declined by 112.95 points, or 0.30%, to end the day at 39,407.20.
Asian markets showed a mixed performance on Thursday. Hong Kong’s Hang Seng Index ended in the red at 26,086.32, falling 113.94 points, or 0.43%. In contrast, China’s Shanghai Composite Index closed at 3,875.30, gaining 63.08 points, or 1.65%. South Korea’s KOSPI Index rose by 29.67 points, or 0.9%, to close at 3,344.2. Japan’s Nikkei 225 Index also ended higher at 44,372.5, advancing 534.83 points, or 1.22%. As of 4:11 p.m. IST, US Dow Jones Futures were trading up by 77 points, or 0.17%, at 45,617.
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