MGL rides PNG adoption wave, analysts see further upside

The central government's late-March mandate requiring households with piped gas access to transition from LPG to PNG within three months is expected to accelerate MGL's volume growth from single digits to double digits, up from 8.3% in FY26. MGL has guided for a capex of around ₹1,200 crores in FY27 and aims to add four-five lakh PNG customers in the near term. Motilal Oswal Financial Services expects about 9% annual volume growth over FY26-28 and calls the stock attractive at around 10.8x FY28E P/E with scope for re-rating.