Mahanagar Gas Q2 Results Review - Superb Volume; Margin Moderation Continue: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Mahanagar Gas Ltd. posted Ebitda/profit after tax -8%/-4% below our estimates, mainly due to-slightly higher gas cost;a 34% YoY increase in employee cost; andhigher operating expenses. .Key highlights are:volume growth guidance of ~7% for FY25 and Ebitda margin of Rs 10-12/scm; Q3-to-date administered pricing mechanism gas allocation for CNG dropped to ~57% versus 71% in H1 FY25, while allocation for PNG - D remain at 105%; andCNG vehicle addition of 23k/quarter versus 21K/quater in Q1 FY25..The CNG two-wheeler addition is still at a nascent stage (1200/quarter) with a maximum consumption of 1.5kg/day. Mahanagar Gas posted more than 13% YoY volume growth consistently in the last three quarters, indicating an upside risk to our assumption of 7.5% volume CAGR over FY24-27E. We have also tweaked up the other income assumptions, which increases our FY25E/FY26E earnings estimates by 3.5%/4.2%. Given the sharp correction in the stock price last week, we are upgrading our rating to ‘Buy’ from Accumulate and slightly raising our SoTP-based target price to Rs 1,870 from Rs 1,855..Click on the attachment to read the full report:.JSW Steel Q2 Results Review - Revenue Inline; Lower-Than-Expected Costs Drive Earnings Beat: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Mahanagar Gas Q2 Results Review - Superb Volume; Margin Moderation Continue: Dolat Capital

Given the sharp correction in the company's stock price over the last week, the brokerage adjusts its recommendation from Accumulate to 'Buy'.

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Mahanagar Gas Q2 Results Review - Superb Volume; Margin Moderation Continue: Dolat Capital

Given the sharp correction in the company's stock price over the last week, the brokerage adjusts its recommendation from Accumulate to 'Buy'.

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