This PSU Stock is ready to run! Brokerage double upgrades rating, know the next target of the stock Business News, Hindi Samachar

PSU Stocks to Buy: There is a lot of activity in the stock market these days. Companies are releasing business updates before the results. Due to this stock action is being seen. Due to the strong upgrade, the stock is getting further triggers for further rise. Global brokerage house Jefferies has picked one such share, which is from the gas sector. The brokerage has advised to invest in the shares of Mahanagar Gas Limited for long term.

MGL: Rating and target upgrade



Jefferies has upgraded both the rating and target on MGL. Under this, the rating has been double upgraded from HOLD to BUY. The target on the stock has been increased from Rs 1100 to Rs 1320. The share had closed on BSE on October 3 at a price of Rs 1109. That means investors can get a profit of up to 20 percent per share.

Brokerage Report on MGL

The global brokerage said that the recent partnership with OEM will support the volume. The company has launched offers for car buyers, along with OEMs. Under this, a free fuel card of Rs 20,000 has been launched for car buyers. Apart from this, an agreement has also been made for free gas for different vehicles. This will provide priority to margins in gas allocation.

MGL: Strong Fundamentals

The company will benefit from reduction in prices of difficult fields. Let us tell you that the price of gas from difficult fields has been reduced by 18% from $12.12 to $9.96 per mmbtu. The risk of EV is also less in the areas where the company operates. Also, the income estimate for FY24/25 has been increased by 6 to 27%. Apart from this, the volume growth estimate for FY25/26 has been increased from 4% to 6%. Valuations are also cheap. Forward PE is 10, which is lower than the 5-year average

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(Disclaimer: The advice to invest in stocks here has been given by the brokerage house. These are not the views of Zee Business. Consult your advisor before investing.)

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