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Thanks @Dinesh_476 for sharing the details.
Can someone please help me understand as to why Indraprastha Gas is richly valued compare to Mahanagar gas - both are PSU and into similar business. Is there any fundamental reason (because of size, profitability, growth potential, ROCE, corporate governance etc) or just a perception.
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Market is always forward looking. Where is the future of MGL? They are only in 3 GAs.
Compare the same with IGL. As of now, Delhi contribute 65% of volume. Noida, Greater Noida & Ghaziabad contribute 21%. Rewari 3%, Gurgaon 2%, Karnal 1%, Meerut Muzaffarnagar 1% are other areas for growth. Kanpur, Kaithal is just the beginning. So is Ajmer. Bareilly, Unnao and Jhansi in UP are additional GAs (through collaboration). Then they have 50% share in Maharashtra Natural Gas Ltd (MNGL) - Pune & nearby areas.
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Mahanagar Gas - Story slowly unfolding.
Future Prospects -
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Entered i MOU with BMC to set up to set up CBG plant in Mumbai with a capacity of 1000 tons per day.(Reducing carbon footprints - Which EV sector has not achieved)
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Entered MoU with Baidyanath LNG for setting up LNG stations in Maharashtra and outside also.
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MGL also launched a mobile application MGL-TEZ in partnership with the BEST, the
transport company in Mumbai to facilitate convenient refueling for CNG commercial vehicle. -
As far as our Raigad GA is concerned, they have connected 69,106 domestic households and 29
CNG stations are currently operating there. -
The Savroli station, which is having LNG dispensing facility also was recently commissioned.
And they have started filling LNG into the vehicles from the Savroli station. -
MSRTC currently, they are running about 120-plus CNG buses. And they are expected to roll out 450 more buses to be inducted in 8 MSRTC depots in MGL geographical areas by November or December of this year. So about 50, 60 or so will add on every month.
(So those 450 buses will definitely contribute to volume addition over the next 2 quarters) -
They have recently commissioned online CNG filling facility for the vendor Vithalwadi Depot.
And are in the process of setting up CNG infrastructure in 6 more of their depots which are at:
Panvel, Karjat, Pen, Roha, Alibaug, Uran. -
MGL has signed a Share Purchase Agreement to acquire 100 per cent stake of Unison Enviro Private Limited (UEPL).
This acquisition will enable MGL to expand to newer geographical areas in Maharashtra (Ratnagiri, Latur & Osmanabad) and Karnataka (Chitradurga & Davanagere) thereby providing new avenues for long term growth.
Disclosure - Not Invested
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LNG trucks will be the next big thing as they can eliminate the need for refuelling for long haulage can go 1000 miles in one go, and popular abroad,although upfront cost is higher but, in reduced emissions and cost savings vis a vis diesel it is a winner , if the tie up of BLNG and green line picks up .
Disclosure: Invested and could be biased as working in Gas sector
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@Vego Its really interesting to know that you work in Gas sector. Can you share your insights on being close to it, and your thesis behind your investment here. It will be much appreciated.
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CNG vehicles would remain a preferred mode of transport in and around city area due to presence of CNG filling stations.
But for long haul trucks and buses , LNG would be preferred as LNG in liquid form can be stored in Cryogenic fuel tanks for long distance journey and no top up required up to 1000-1500 kms and even more .
But both CNG & LPG are non-renewable energy , though both are 8-16 times cleaner than petrol diesel vehicles in terms of carbon. Further , we have to meet our CNG/ LNG requirement partly through imports.
Therefore , CNG & LNG are approaching towards semi-final. and both would gradually & ultimately be replaced by renewable energy like CBG (compressed Bio gas) & LBG (Liquified Bio gas).
The beauty of the technology is such that the existing CNG network/ Infrastructure can handle CBG / LBG fuel dispensing and existing CNG/ LNG vehicles will be able to run with CBG & LBG fuel. After all all the four contain a simple molecule called Methane CH4 as source of energy.
The other alternatives would coexists together for quite some time - EV, Hybrids , Ethanol , Ethanol + petrol, Bio diesel , Hydrogen IC and Hydrogen fuel cell.
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The Article does not mention about Li ion battery replacement cost, which could be one of the major cost factor even if recycling is adopted in a big way as replacing with a recycled battery will also cost money which would be of recurrent nature.
But the way in which EV adoption is taking place would over , hopefully some solution to high repair maintenance cost would be found out in the long run and the Govt subsidy will continue for quite some time.
EV will coexist for quite some some along with other renewable & non renewable form of energy.
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Recent correction offers good buying opportunity:
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