Shares of Mahanagar Gas Ltd (MGL) fell sharply in Wednesday's trading session. The stock slumped 17.05 per cent to hit a day low of Rs 1,298 as against a previous close of Rs 1,564.85. At today's low price, it has slipped 17.80 per cent from its one-year high value of Rs 1,579, a level seen in last session. Despite the mentioned drop, the scrip has gained 42.78 per cent from its 52-week low price of Rs 909.10, hit on April 3 last year.
The company has announced a cut in compressed natural gas (CNG) prices. "Due to reduction in gas input cost, MGL is pleased to announce reduction in CNG price by Rs 2.5 per kg in and around Mumbai. The revised MRP of CNG will be Rs 73.50 per kg effective from midnight of March 5, 2024/ morning of March 6, 2024," it stated.
MGL said its CNG price now offers attractive savings of 53 per cent compared to petrol and 22 per cent compared to diesel at current price levels in Mumbai while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers.
"As consumption picks up, we will see volume growth coming in. Not concerned with these short-term price adjustments. Volume growth will take care of it," Gaurang Shah, Senior VP at Geojit Financial, told Business Today TV.
The stock saw high trading volume today as around 2.07 lakh shares were seen changing hands on BSE. The figure was way more than the two-week average volume of 13,000 shares. Turnover on the counter came at Rs 28 crore, commanding a market capitalisation (m-cap) of Rs 13,015.95 crore.
The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The scrip's 14-day relative strength index (RSI) came at 37.37. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 11.96 against a price-to-book (P/B) value of 3.30. Earnings per share (EPS) came at 130.89 with a return on equity (RoE) of 27.63.
As of December 2023, promoters held a 32.50 per cent stake in the natural gas distribution company.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)