Buy MGL, target price Rs 945: Sagar Doshi

Sagar Doshi of Edelweiss Financial Services has a buy call on Mahanagar Gas with a target price of Rs 945. The current market price of Mahanagar Gas is Rs 889.2. Sagar Doshi recommended to keep a stop loss at Rs 860.

Mahanagar Gas key products/revenue segments include gas natural which contributed Rs 3,031.27 crore to sales value (99.16 per cent of total sales), other operating revenue which contributed Rs 20.28 crore to sales value (0.66 per cent of total sales) and pipes & fittings which contributed Rs 5.24 crore to sales value (0.17 per cent of total sales) for the year ending 31 March, 2019.

For the quarter ended 30-06-2019, the company has reported a standalone sales of Rs 757.49 crore, up 4.84 per cent from last quarter sales of Rs 722.54 crore and up 22.31 per cent from last year same quarter sales of Rs 619.34 crore. The company has reported a net profit after tax of Rs 170.24 crore in latest quarter. The company’s top management includes Ashutosh Karnatak, Arun Balakrishnan, Deepak Sawant, Premesh Kumar Jain, Raj Kishore Tewari, Sanjib Datta, Santosh Kumar, Mrs.Radhika Haribhakti. Company has SRBC & Co LLP as its auditor. As on 30-06-2019, the company has a total of 98,777,778 shares outstanding.