Shares of this high-dividend paying PSU stock jumped up to 7 percent in Monday’s trading session after the company posted results for the quarter ended September 2023.
With a market capitalization of Rs 10,033.35 crores, the stocks of Mahanagar Gas Limited opened their trading hour on Monday at Rs 1,018.60 and currently trades at Rs 1,015.75 apiece.
The scrip witnessed an intra-day high of Rs 1,055 indicating a gain of around 7 percent as compared to the previous close of Rs 989. The company reported a dividend yield of around 2 percent.
Such sharp movements in the stock prices were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), published the financial results for the quarter ended September 2023.
The company, on a QoQ basis, reported an opposing movement in the prime business indicators such as the operating revenues as well as net profits, with the former, on one hand, increasing from Rs 1,690 crores during Q1FY23-24 to Rs 1,729 crores during Q2FY23-24, and, the latter, on the other hand, moving down from Rs 368 crores to Rs 339 crores.
Yearly, the company reported positive movements as far as the abovementioned metrics are concerned. The operating revenues took an upward shift from Rs 1,718 crores during Q2FY22-23 to Rs 1,729 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, more than doubled from Rs 164 crores to Rs 339 crores.
Citi, one of the well-known brokerages across the globe, gave a ‘Buy’ tag to the company’s stock with a target price of Rs 1,240 indicating a potential upside of 22 percent as compared to the current stock price level prevailing in the market.
As per the shareholding data available for the September 2023 quarter, the company’s Promoters, viz, GAIL (India) Limited, held majorly by the President of India, hold a 32.50 percent stake, and the Foreign Institutional Investors hold a considerable stake of 30.51 percent in the company.
Mahanagar Gas Limited (MGL) is a natural gas distribution company based in India distributing gas through the City Gas Distribution network of pipelines. The company carries out principal business operations in India. It generates revenue by way of the sale of natural gas, of which CNG accounts for a majority revenue contributor.
Written by Amit Madnani
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