The recent hike in domestic gas allocation for CNG has created room for Indraprastha Gas Limited (IGL)/Mahanagar Gas Limited (MGL) to defend their respective Ebitda per scm till $70/60 per mmbtu Spot price (assuming APM price is capped at current level). Gujarat Gas (GUJGA) could surprise positively if it receives its contracted spot volumes in H2FY23. However, we see earnings downside risk of 7-22% if GUJGA fails to procure the contracted Spot vol @ $30. Govt allocates higher share of domestic gas for CNG: The oil and gas ministry has allocated higher volume of domestic gas to the CGD priority …
