Mahanagar Gas Share Price Today Jumps 3%: What's Fueling Brokerage's 31% Upside Call On Stock Amid Iran-US War

Mahanagar Gas Share Price Today: Shares of the city gas distribution company, Mahanagar Gas Limited (MGL), rallied on Friday, June 12, as part of a broader rally in the segment amid optimism surrounding the Iran-US deal. Mahanagar Gas shares were trading 2.62% higher at Rs 1,090 per share on the BSE at 1:30 pm on Friday.

The stock has corrected nearly 13% over last three and half months due to rising input gas cost because of brent crude oil price rally led by Strait of Hormuz blockade amid West Asia crisis. Despite geopolitical uncertainty, expert believe that the company is likely to perform well in the coming months due to expected CNG price hike, easing execution bottlenecks and sustained CNG volume growth.

Mahanagar Gas Share Price Outlook

Rising domestic PNG connections, CNG volume growth, regulatory push and easing execution are likely to help the company growth in the next quarter. There has been a sharp improvement in D-PNG conversion momentum, with daily connections increasing to 1,000-1,200/day in May 2026 against an average rate of 700-800. "The company added 40k+ D-PNG connections in May'26 alone and expects 120k-150k additions over the next four months (3.2m connections in FY26)," as per the Motilal Oswal report.

Govt Push To Limit LPG Use May Benefit Mahanagar Gas

Since the beginning of the US-Israel war on Iran, India's is facing a massive supply crunch of Liquified Petroleum Gas (LPG). To curb the LPG use among Indians, the central government has urged people to switch to PNG connections.

The government's push to curb LPG usage in areas with existing PNG infrastructure is likely to benefit city gas distribution firms like Mahangar Gas. "We believe that D-PNG growth could trend above earlier expectations, while CNG volumes are expected to sustain high single-digit growth, supported by vehicle additions and recovery in bus additions," noted Motilal Oswal in its report.

Mahanagar Gas Share Price Target

The brokerage has given a 'Buy' recommendation for Mahanagar Gas stock with a target price of Rs 1,390 per share. "MAHGL currently trades at ~10.8x FY28 P/E. With an estimated PAT CAGR of 8% over FY26-28, healthy FY28 RoCE of ~13.2%, and a strong balance sheet with FY28E net debt/equity of ~0.1x, we believe valuations are inexpensive. We value MAHGL at 14x Dec'27 P/E, resulting in a TP of INR1,390. We have a BUY rating."

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