Share of Mahanagar Gas Ltd is currently trading at around Rs.1378/-Existing as well as Prospective Investors are asking for Mahanagar Gas Share Price Targets for 2025,2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the Mahanagar Gas Share Price Targets for 2025,2030,2035 and 2040
Discussion & Analysis of Business & Financial performance with future business prospects of Mahanagar Gas Ltd:
Mahanagar Gas Limited (MGL) is a leading natural gas distribution company in India, primarily serving Mumbai and its surrounding regions. Established in 1995, MGL provides piped natural gas (PNG) to domestic, commercial, and industrial customers, as well as compressed natural gas (CNG) for the automotive sector
Current Business Performance:
In the financial year 2023-2024, MGL reported a net profit of ₹1,289 crore, a significant increase from ₹790 crore in the previous year. This growth is attributed to a reduction in gas purchase prices and operational efficiencies. The company’s profit before tax also rose by 64.11% to ₹1,733 crore during the same period
As of March 2024, MGL’s extensive infrastructure includes over 6,500 kilometers of carbon steel and polyethylene pipelines, serving approximately 2.49 million domestic customers and around 4,500 commercial and industrial customers. The company operates a network of approximately 347 CNG stations with 1,909 dispensing points, catering to nearly 996,000 CNG customers in its geographical areas.
However, in the second quarter of 2024, MGL experienced a 16.5% decline in profit, primarily due to a surge in fuel costs. The company’s profit after tax fell to ₹2.83 billion from ₹3.39 billion in the same period the previous year. This decline was attributed to a 20% increase in natural gas costs, leading to an 18% rise in total expenses.
Future Business Prospects:
MGL has outlined several strategic initiatives to bolster its growth: Infrastructure Expansion: The company plans to invest ₹1,000 crore in the fiscal year 2024-2025, with ₹800 crore allocated to MGL and ₹200 crore to Unison Enviro Private Limited (UEPL). The investment aims to develop 25 kilometers of steel pipeline infrastructure, 200 kilometers of polyethylene pipelines, and the addition of approximately 60 CNG stations under MGL and 30 under UEPL. Additionally, MGL intends to connect over 300,000 new domestic PNG customers, 60 industrial connections, and 300 commercial connections.
- Volume Growth: The company expects a volume growth in the range of 6% to 7% in the upcoming fiscal year, driven by the expansion of its customer base and infrastructure.
- Geographical Expansion: MGL is extending its operations into new areas, including Raigad and Nashik, targeting an additional customer base of approximately 1.5 million households by 2025.
- Product Diversification: The company is diversifying its product offerings beyond CNG to include liquefied natural gas (LNG) for various sectors, including commercial and industrial, which is expected to contribute an estimated 15% to revenue growth over the next three years.
- Strategic Acquisitions: MGL is exploring strategic acquisitions to enhance its market presence. The company has announced plans to invest up to ₹500 crore for potential acquisitions in the Indian gas sector to bolster its operations. In conclusion, Mahanagar Gas Limited has demonstrated robust financial performance and is proactively pursuing strategic initiatives to ensure sustained growth. By expanding its infrastructure, diversifying product offerings, and exploring new markets, MGL is well-positioned to capitalize on the increasing demand for natural gas in India.
Share Price Targets:
Mahanagar Gas Share Price Target 2025
Based on the above discussion and analysis, the share price of Mahanagar Gas Ltd is likely to touch the level of around Rs.1500-1550 in 2025
Mahanagar Gas Share Price Target 2030
Based on the above discussion and analysis, the share price of Mahanagar Gas Ltd is likely to touch the level of around Rs.2500-2750 in 2030
Mahanagar Gas Share Price Target 2035
Based on the above discussion and analysis, the share price of Mahanagar Gas Ltd is likely to touch the level of around Rs.4500-5000 in 2035
Mahanagar Gas Share Price Target 2040
Based on the above discussion and analysis, the share price of Mahanagar Gas Ltd is likely to touch the level of around Rs.8000-9000 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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