MGL shares jump after company posts 84% surge in Q3 profit; global brokerages upbeat

The company’s revenue during the period under review, however, took a hit and came in lower at Rs 1,723.77 crore in comparison to Rs 1,838.44 crore recorded last year.

Jefferies retained a ‘buy’ call on MGL with a target of Rs 1,450 per share.

Mahanagar Gas Ltd (MGL) shares jumped on Wednesday after the Mumbai-headquartered natural gas distribution company reported operationally strong financial results for the October-December (Q3 FY24) period. The MGL stock jumped by as much as Rs 38.8, or 3.0 per cent, to Rs 1,351 apiece on BSE, coming within inches of a 52-week high touched the previous day.

At 9:40 am, MGL shares held on firmly to the green with a gain of 2.3 per cent for the day at Rs 1,342.3 apiece.

MGL Q3 FY24 results

After market hours on Tuesday, MGL reported a consolidated net profit of Rs 317.2 crore for the quarter ended December, up 84 per cent on a year-on-year basis and driven by lower gas costs.

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Its quarterly revenue, however, contracted to Rs 1,723.8 crore from Rs 1,838.4 crore a year ago, according to a regulatory filing.

What brokerages say on MGL

Brokerage Citi maintained a ‘buy’ rating on MGL and raised its target for the stock to Rs 1,480 from Rs 1,390.

According to the brokerage, the company staged a solid Q3 performance, with EBITDA increasing 75 per cent on a year-on-year basis to Rs 450 crore, driven by not just by a beat in margins but on the back of robust sequential growth in volumes.

Jefferies retained its ‘buy’ call on the counter with a target of Rs 1,450, implying an upside of 10.5 per cent from the previous close.