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Why did gas distribution companies’ shares shine? MGL, IGL, and Gujarat Gas trading at 52-week highs”

There was a strong surge in the shares of gas distribution companies in the domestic stock market on Tuesday. During the trading session, shares of companies such as MGL, IGL, and Gujarat Gas rose by 3-10%.

The main reason for the boom in gas distribution companies was Mahanagar Gas Ltd’s release of its fourth-quarter results after the market closed on Monday evening. The company’s business performance was better in the fourth quarter of the financial year. In the information sent to the stock market, the company said that the most attractive aspect of the results was the company’s margin which increased from 15.3% to 24.2%. The market estimate was 16%.
Apart from this, the company’s profit has increased by 56.2 percent from Rs 172.1 crore to Rs 268.8 crore. However, the estimate was that the profit would be flat around Rs 170 crore. Even though the company’s income decreased by 3.6 percent from Rs 1,671.4 crore to Rs 1,610.5 crore but the operatworking profit has increased by 52.2 percent from Rs 256.1 crore to Rs 389.7 crore. Apart from this, the company has also declared a dividend of Rs 16 per share.

Due to its effect, Mahanagar Gas Ltd. stock opened at the level of 1040 Rs on Tuesday from a previous close of Rs 999 on Monday in Bombay Stock Exchange. During trading the stock rose to 1097.50. This is the upper level of the last 52 weeks for the gas distribution company. On the other hand, the share of IGL, another leading company of the same sector, opened at Rs.488.25 at the previous closing level of Rs.488. During the trading, it went up to a high of Rs 515.55, which is the highest level of 52 weeks of the company. The shares of Gujarat Gas limited reached a high of 475 from the previous closing of 459.55. This is 13 percent increase. The last 52 week high of the company is Rs.583.60.