The shares of the leading natural gas distributor fallen up to 1.4 percent after Life Insurance Corporation of India sold 21 lakh equity in the company.
With a market capitalization of Rs 19,147.58 crore, the shares of Mahanagar Gas Ltd were trading at Rs 1,938.45 per share, increasing around 0.41 percent as compared to the previous closing price of Rs 1,946.45 apiece.
Reason for rise:-
According to the company filing, The Life Insurance Corporation of India (LIC) decreased its ownership position in Mahanagar Gas Ltd. by 2.09%, selling 20.65 lakh shares between September 2023 and September 2024. LIC’s stake in the firm has fallen from 9.03 percent to 6.94 percent.
As of June 2024, Life Insurance Corporation Of India holds 75.76 lakh equity shares which is equivalent to 7.67 percent in the company.
Financial condition:-
Examining the company’s financial position, revenue magnified 3 percent from Rs 1,538 crore in Q1FY24 to Rs 1,590 crore in Q1FY25, during the same time frame, net profit plummeted by 23 percent from Rs 368 crore to Rs 285 crore.
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Capital Expenditure Plans:
The company’s capital expenditure for the quarter was approximately ₹250 crores. It plans to add over 50 new CNG stations in FY 2025, along with an additional 25 stations in UEPL, bringing the total to around 75 new CNG stations to enhance its distribution network.
LNG operation:-
MGL currently operates one LNG station, with daily sales rising from approximately 3,000 kgs to over 4,100 kgs. The company plans to expand its LNG operations through a joint venture with Baidyanath LNG, aiming to enhance its capacity and market presence in the liquefied natural gas sector.
Market Trends and Growth Drivers:-
MGL expects sustained growth in the CNG segment, driven by the addition of approximately 20,800 CNG vehicles this quarter, including 14,200 private cars and taxis, 5,000 three-wheelers, and 1,200-1,300 small commercial vehicles. The launch of CNG two-wheelers by Bajaj and TVF will further boost volume growth.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 32.50 percent while Retail shareholders own a 9.32 percent stake in the company, and Foreign Institutional Investors own a 31.49 percent stake.
Company profile:-
Mahanagar Gas Limited is an Indian natural gas distribution business. The company distributes compressed natural gas (CNG) and piped natural gas (PNG) throughout Mumbai, Thane, and Raigad, Maharashtra. It operates in the city gas distribution segment.
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Written by:- Abhishek Singh
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