Mahanagar Gas share price rises 5% on piped cooking gas price hike in Mumbai

Mahanagar Gas share price surged by more than 5% in early trading on Tuesday following news of price hikes for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Mumbai. The stock opened at Rs 1,752.20, higher than the previous closing price of Rs 1,669, and climbed to Rs 1,762.25, marking gains of over 5%.

Mahanagar Gas, a distributor of natural gas, has raised the price of CNG by Rs 1.50 per kg, bringing the total cost, including taxes, to Rs 75 per kg. Additionally, the price of domestic PNG has increased by Rs 1, now costing Rs 48 per standard cubic meter (SCM) with taxes. These new rates took effect from midnight on July 9th, according to news reports.

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The decision to hike prices was influenced by the existing price arbitrage between CNG and the higher costs of petrol and diesel in Mumbai, making the increase feasible for Mahanagar Gas.

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Mahanagar Gas Q4FY24 Performance

Mahanagar Gas reported a 1% decline in net profit, reaching Rs 264.99 crore, and a 3% drop in net revenue from operations, amounting to Rs 1,567.03 crore, in Q4 FY24 compared to Q4 FY23. 

However, EBITDA saw a slight improvement, rising to Rs 393.79 crore in Q4 FY24 from Rs 389.68 crore in Q4 FY23. The EBITDA margin for the fourth quarter increased to 25.13%, up from 24.20% in the same period last year.

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Whereas in Q4 of FY24 the total sales volume for the period under review reached 343.91 million SCM, marking a 13% year-on-year increase. Within this, CNG sales volume totaled 242.57 million SCM, up 12% YoY, and PNG sales volume amounted to 101.34 million SCM, up 17% YoY.

Stock Performance in last one year

The shares of Mahanagar Gas have demonstrated positive returns across various time intervals. In the last month, the stock delivered a positive return of 18.81%. Over the past six months, it exhibited strong momentum with returns of 40.02%, indicating a robust performance. 

Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 39.39%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 52.53% in the last year.

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