Mahanagar Gas Limited stock analysis: What investors should know?

HDFC Securities recommends buying MGL shares, anticipating strong returns in the future.

MGL shares closed at ₹1,274 on Monday. As of Tuesday afternoon, the stock is trading at ₹1,237.60, down about 3%.

HDFC Securities notes that MGL has outperformed the Sensex in the last month, positively impacted by the CNG rate hike in December 2024.

MGL's strong performance and demand, coupled with  increasing number of CNG vehicles, are positive factors. CNG vehicle numbers have risen in MGL's operational areas until Dec.

HDFC Securities has reduced the target price for MGL from ₹2,200 to ₹2,000, but still expects a long-term return of around 56%.

According to HDFC Securities, MGL's current price is about 19% below its 5-year average. Its strong volume growth and affordable CNG price make it a good investment.

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