Started researching about this stock on the recommendation of @santoshj on the mgl thread.
The great cagr is what got me curious to look into this company but deep diving in,I have found there is certain risk one of them being competition from adani gas which is providing same product but cheaper also reading in there annual report they operate in the same region as gujarat gas ,so going forward the company might not get the monopilistic valutions it once did and personally i find that a private player will always take market share from the government operated company due to it being more cost efficient and better managed.
Although cost of natural gas prices has fallen last month but is expected to remain volatile let’s see how it will fair against the competition from methane and adani.
personally i believe Cng is the future specially in cities like delhi and mumbai ,where most people don’t have designated parking spaces to charge there car given the high real estate prices.Moreover a used or new car can be converted into cng easily making the cost of purchase low compared to the cheapest electric car.
Disc :No investments bullish on the sector ,will wait and watch how the next few quarters play out in.
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