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HomeMarket NewsHow are shares of ONGC, Oil India, GAIL, IGL, MGL likely to react post APM Gas price hike
Brokerage firm Jefferies, in a note last Friday, had mentioned that the reforms in gas and crude pricing could support ONGC's Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 14% over financial year 2025-2027.
Shares of Indian gas companies like Oil & Natural Gas Corporation (ONGC) Ltd., Oil India Ltd., GAIL, and City Gas Distributors like Indraprastha Gas Ltd. (IGL), Mahanagar Gas Ltd. (MGL) and Gujarat Gas Ltd. will be in focus on Tuesday, April 1, after the government announced increased the prices of gas through the Administered Price Mechanism by 4%.
The APM gas prices have been fixed as $6.75 per mmBtu for the period of April to September this year. For the first three months of the year, the prices remained steady at $6.5 per mmBtu.
This is the first increase in the APM gas price since April 2023 and is in-line
with the recommendations made by the Kirit Parikh panel.
As per the recommendations of the panel, which were put in place from April 2023, there was a provision to increase the prices of gas by 4% from the third year of implementation.
Brokerage firm Jefferies, in a note last Friday, had mentioned that the reforms in gas and crude pricing could support ONGC's Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 14% over financial year 2025-2027.
It remains to be seen how beaten down names like IGL and MGL react to this. As of last Friday's close, shares of IGL were still down 28% from their peak, while those of MGL were down 30%.
