Retain ‘purchase’ on Mahanagar Gasoline with TP of Rs 1,241 Amongst CGDs, MGL’s volumes took the harshest knock as Mumbai is among the many worst-hit by Covid-19. (Picture: Reuters)Mahanagar Gasoline (MGL) reported Q2FY21 Ebitda of Rs 2.2 billion (-19.1% y-o-y), considerably forward of ours and consensus forecast as a result of an all-time excessive gross margin of Rs 17.28/scm, up 17.7% y-o-y. MGL additionally reported an all time excessive Ebitda margin, which surged 17% y-o-y as the corporate minimize opex by 53% y-o-y and didn’t go on the declining enter costs. After falling by 31% y-o-y throughout 2QFY21, volumes in October and November to this point have recovered to ~100% of pre-Covid-19 in accordance with administration (versus ~105%/93% at Gujarat Gasoline/IGL). We imagine issues on margin dilution as a result of open entry are overblown. Retain ‘purchase’ with a revised TP of RS 1,241.Amongst CGDs, MGL’s volumes took the harshest knock as Mumbai is among the many worst-hit by Covid-19. Volumes fell 31% y-o-y throughout 2QFY21 (versus IGL 12%, GGL+6%).Although CNG volumes fell to 1.3mmscmd (down 42% y-o-y), home PNG surged to 0.5mmscmd (up21.6% y-o-y).Administration indicated that volumes will stay modest in FY21 till CNG autos are again to pre-Covid-19 in Pune and Mumbai. They additional added CNG volumes have recovered to 90–95%, Industrial to ~100%, and home to ~130% whereas nonetheless lagging in industrial. Gross and Ebitda margin each scaled all-time highs in Q2FY21, and would stay elevated owing to approaching winter seasonal demand as we imagine MGL might partially retain the good thing about the 25% minimize in enter gasoline worth.Capex steerage for FY21 stays at ~Rs 5 billion, and we count on inside money move to be ample to fund this regardless of modest earnings. New space–Raigad—volumes had been 0.4mmscmd pre-Covid-19 and might add 0.5–0.6mmscmd at peak run price. They’ve the PNGRB’s approval for an 8.5km pipeline enlargement from Rasayni to Panvel and 5.5km on NH-17 (Goa freeway), which can additional spur their volumes.Get stay Inventory Costs from BSE, NSE, US Market and newest NAV, portfolio of Mutual Funds, calculate your tax by Earnings Tax Calculator, know market’s Prime Gainers, Prime Losers & Finest Fairness Funds. Like us on Fb and observe us on Twitter.Monetary Specific is now on Telegram. Click on right here to affix our channel and keep up to date with the newest Biz information and updates. By bhagat|2020-11-19T09:03:11+05:30November 19th, 2020|Categories: Latest News|Tags: expert advice on investments, investment in mahanagar gas, mahanagar gas, mgl, should i invest in mahanagar gas, where should i invest|0 CommentsShare This Story, Choose Your Platform!FacebookTwitterRedditWhatsappTumblrEmail Related Posts Analyst nook: Downgrade KMB to ‘impartial’ with TP revised to Rs 1,800 Gallery Finances to unveil giant DFI for infrastructure Gallery Share Market At this time LIVE | Sensex, Nifty, BSE, NSE, Share Costs, Inventory Market Information Updates November 27 Gallery Ease of doing biz: Extra minor offences to be decriminalised Gallery Equal entry to subsidies: Why not give LPG subsidies to a privately-owned BPCL? Gallery Leave A Comment Cancel replyYou must be logged in to post a comment.