Mahanagar Gas Rallies to Trade at New Lifetime High

Retail investors have failed to notice a rally in Mahanagar Gas (MGL) as individual shareholding in the company more than halved to 4.69 percent in September quarter from 10.66 percent at the end of June quarter. 

Mahanagar Gas share price hit a new lifetime high of Rs 80.25 on NSE in intra-day trade on Friday in an otherwise weak market. Thus far in October, the stock outperformed the market by rising 22% as compared to 0.43% rise in the S&P BSE Sensex. 

Since listing, the stock rallied 55% from Rs 520, against 3% rise in the benchmark index Sensex. Mahanagar Gas share price is now trading at a 90% premium against issue price of Rs 421 per share. The stock has nearly doubled if a dividend of Rs 17.50 per share paid in September is considered. 

As per the shareholding pattern for the quarter ended September 30, 2016, filed by Mahanagar Gas Limited shows that individual shareholders sold 5.89 million shares of the company in July-September period. 

The number of individual shareholders holding share capital up to Rs 2 lakh has come down to 73,152 at the end of September quarter. As of June 30, there were 245,526 individual shareholders owning share capital up to Rs 2 lakh, as the shareholding pattern data confirms. The number of individual shareholders holding share capital in surplus of Rs 2 lakh has been also reduced to 8 from 15 earlier. 

Foreign portfolio investors (9.77%) and mutual funds (5.28%) bought a great deal in Mahanagar Gas counter with their collective holding in the company amplified to 15.05% in September quarter from 5.53%. At the end of June quarter, foreign portfolio investors and mutual funds owned 1.72% and 3.81%, respectively.

Mahanagar Gas is the top 500 stock pick for the quarter identified by Dynamic Levels from among 1700 shares. For the details on the stock, visit Mahanagar Gas share price history page of Dynamic Levels website.