MGL shares crack 5% as Q4 nos fail to excite Street

NEW DELHI: Shares of Mahanagar Gas (MGL) declined over 5 per cent in Friday's session, a day after the company said its March quarter net profit jumped nearly 27 per cent to Rs 133 crore from Rs 105 crore in the corresponding quarter a year ago.

March quarter revenue from operations jumped 23 per cent to Rs 793 crore from Rs 644 crore in the same quarter last year.

The numbers failed to excite the market as global brokerage Jefferies maintained an underperform rating on the stock with a target price of Rs 760 per share.


The brokerage said while volumes were in line, the earnings could not meet the expectations due to lower-than-expected margins. The stock trades at 16 times FY20E P/E which looks unappealing, the brokerage added.

Meanwhile, the board of directors of the company on Thursday recommended a final dividend of Rs 10.50 per equity share, with face value of Rs 10 each, for the financial year ended March 31, 2019.

Shares of Mahangar Gas closed 5.20 per cent down at Rs 888.95 on BSE.