“While MGL continues to expand in existing areas in Mumbai Metropolitan Region (MMR) as well as in Raigadh, the disruption in volumes due to Covid-19-induced lockdown has severely impacted the growth prospects for FY21E with management also cautioning towards a lower capex (from Rs 400-500 crore levels) which will see a deferment in company’s expansion plans,” analysts at Centrum Broking said in Q4FY20 result update.
Additionally, growth beyond FY23-24E is also uncertain, given a lack of new areas in MGL’s portfolio, it adds.
As regards IGL, analysts at Edelweiss Securities note that given IGL is opening 40 new CNG stations per year amid low penetration, it would log healthy growth in existing geographies.
"IGL is a steady growth story with robust volume growth outlook and high exposure to priority sectors. We estimate an EPS CAGR of 10 per cent over FY20–22. Maintain ‘BUY/SO’ with a target price of Rs 569," the brokerage said in a result review note issued on June 17.