Last Updated:
Indraprastha Gas share rate today
Shares of city gas circulation firms dropped adhering to the statement that the govt will certainly lower concern gas allowance to these firms
City gas circulation (CGD) gamers Indraprastha Gas and Mahanagar Gas shares went crazy to 15 percent adhering to the statement that the federal government will certainly lower concern gas allowance to these firms.
Mahanagar Gas Ltd (MGL) shares dropped by 14.5 percent to today’s reduced of Rs 1,503.80, while Indraprastha Gas Ltd (IGL) toppled 13 percent to Rs 439.40 on the BSE.
According to a plan standard from the Ministry of Petroleum and Natural Gas, locally generated Administered Price Mechanism (APM) gas will certainly be alloted to CGD firms for concern sectors such as Domestic PNG and CNG (transportation).
The plan defines that CGD entities will certainly obtain gas just based upon the readily available amount alloted to GAIL (India) Limited for these sectors.
“Allocation to the Company for CNG (Transport) has been reduced by ~20 per cent, effective October 16, 2024, compared to the previous average quarterly APM allocation. This being a major reduction in allocation, will have an adverse impact on the profitability of the Company,” claimed MGL in a declaring to the exchanges.
With increasing reliance on market-linked gas, CGD gamers will certainly be required to protect margins at the cost of quantity development. This might activate a derating of the field, kept in mind Jefferies.
CGD firms are most likely to be required to hand down the bulk (otherwise all) of the walk in gas price to end-consumers as or else it will certainly bring about a big appeal their margins. Hiking CNG rate by Rs 3.5-5/ kg or 5-7 percent is most likely to additionally lower the competition of CNG, kept in mind JM Financial.
The broker agent included that this is most likely to additionally wear down prices power in the CNG organization and posture a substantial drawback danger to quantity development and margins. JM Financial reduced its ranking on IGL and MGL to ‘sell’, with a target rate of Rs 435 and Rs 1,400 each, suggesting a drawback from present degrees.
“We still see an upside in MGL and maintain our positive view on the stock amid strong volume growth, while retaining our negative view on IGL. In the near term, the upcoming Maharashtra election may delay MGL’s pricing action, but with a history of pricing proactiveness, the adverse profitability impact should be transitory,” claimed Emkay Global.
Disclaimer: Disclaimer: The sights and financial investment suggestions by specialists in this News18.com record are their very own and not those of the site or its monitoring. Users are suggested to consult licensed specialists prior to taking any type of financial investment choices.
