Indraprastha Gas, Mahanagar Gas Fly Up To 4% Higher As UBS Hikes Target Price
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Shares of city gas distribution companies Indraprastha Gas (IGL) and Mahanagar Gas (MGL) were rising on Tuesday after brokerage firm UBS gave a bullish outlook on the stocks.

What The Brokerage Said: UBS said the inorganic growth prospects complement the strong near-term fundamentals. According to the brokerage firm, the infrastructure expansion and new geographies are set to drive volumes.

The firms’ potential mergers and acquisition opportunities are not priced in currently, the research firm added. 

UBS upgraded Indraprastha Gas to "buy" and raised the target price to ₹700. The brokerage expects volume growth trajectory to improve. It sees volume to improve from 4% in FY24 to 8.2% compound annual growth in FY24-27. 

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For Mahanagar Gas, UBS kept a "buy" call and raised the target price to ₹2,400 from ₹1,600. The research firm sees infrastructure development and compressed natural gas expansion to drive volumes.

UBS raised FY25- FY27 total volumes expectations to 7%-11%. It also raised its EBITDA/ standard cubic meter of gas estimates by 6%-11% factoring in MGL’s price action.

Price Action: Shares of IGL were up 4.69% to ₹554.70.

Shares of MGL were up 3.21% to ₹1,879.90.

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EquitiesLong IdeasNewsUpgradesPrice TargetMarketsAnalyst RatingsMoversIndraprastha GAsMahanagar Gas