Rs 12/Share Dividend: PSU Gas Stock To Trade Ex-Date, BoB Captal Reiterates Buy

Mid cap public sector undertaking, Mahanagar Gas Ltd (MGL) on January 23, 2024 recommended Rs 12 per equity share interim dividend of the face value of Rs 10/- each for the FY 2023-24. The PSU fixed February 5 as the record date.

Brokerage firm BOB Capital Markets Ltd recommended buy call to Mahanagar Gas shares with target price of Rs 1590 apiece. Last trading price of Mahanagar Gas share on BSE is Rs 1461.70 apiece. If you buy MGL shares at last trading price of Rs 1461.70 apiece, you can fetch potential return of 8.78%. Mahanagar Gas shares 46% in last 3-months. Check details below:

BoB Capital Recommends Buy: The brokerage firm said in its reported date January 27, 2024, "Following revised margin and volume forecasts, our FY24/FY25/ FY26 EBITDA projections rise 25%/18%/19% with an EBITDA CAGR of 14.5% (from 8.9%) over FY23-FY26. This coupled with roll-forward of valuation to Jan'25 (from Oct'24) results in a higher TP of Rs 1,590 (from Rs 1,255). Our TP implies an FY24E/FY25E P/E of 11.9x/13.8x, higher than the 3Y/5Y mean one-year forward P/E of 10.8x/11.9x. We believe MAHGL deserves a rerating as it looks set to deliver higher volume growth than its own historical range over the medium term."

MGL Dividend: As per the BSE filing of the company released today, "Interim Dividend of Rs. 12/- per equity share having face value of Rs. 10/- each (i.e. 120%) for the Financial Year 2023-2024 and fixed Monday, 5% February 2024 as the Record Date for the purpose of determining the eligibility of shareholders for the Interim Dividend. The Interim Dividend for the Financial Year 2023-2024 shall be paid to all the eligible shareholders within 30 days from the date of declaration."

Mahanagar Gas Ltd (MGL) Q3 Performance: The PSU declared its consolidated net profit at Rs 317.18 crore for the quarter ended December 31, 2023, up 84% as compared to Rs 172.07 crore in the corresponding quarter of last year. Sequentially, the company's net profit witnessed marginal fall as it was announced at Rs 338.50 crore in the preceding quarter.

The company declared its revenue from operations for the quarter under consideration at Rs 1723.77 crore from Rs 1838.44 crore reported in the similar quarter of last year. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) reported at Rs 496.76 crore during the third quarter, up 72.27% up from Rs 288.35 crore declared an year ago. MGL's total volume declared at 3.671 mmscmd (million metric standard cubic metres per day), up 2.69% compared to last quarter.

Mahanagar Gas Ltd Shares Performance & Return: The 52-week high price of Mahanagar Gas shares on BSE is Rs 1513.00 apiece and 52-week low price is Rs 831.00 apiece, respectively. Its market capitalisation is Rs 14,438.35 crore. MGL shares gained 6% in last 1-week, soared 21% in last 1-month, surged 31% in last 6-months, and rose 66% in last 1-year. In last 2-years, Mahanagar Gas shares jumped 76%. The scrip rallied 36% in last 3-years and soared 58% in last 5-years.

About: Mahanagar Gas Limited, (MGL) one of the India's leading Natural Gas Distribution Company was incorporated on 8th May 1995. GAIL (India) Limited (Maharatna Company of Govt. of India) is the promoter of MGL. MGL has all the resources and competencies required from concept to commissioning of gas distribution networks available in-house. The entire business in MGL has been integrated through ERP-SAP system, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of BoB Capital. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.