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Indian city gas distributors' shares plummet due to reduced cheaper gas supply, increasing costs.
Shares of Indian city gas distributors like Indraprastha Gas, Mahanagar Gas, and Gujarat Gas fell sharply after a second consecutive month of reduced Administered Price Mechanism (APM) gas allocation.
The decrease in cheaper gas supply, replaced by more expensive LNG, has led to downgrades and lower target prices by analysts.
Indraprastha and Mahanagar Gas are expected to face significant hits due to higher reliance on priority sector volumes and lower base margins, while Gujarat Gas is less affected due to its focus on the industrial segment.
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Las acciones de los distribuidores de gas de la ciudad india se desplomaron debido a la reducción del suministro de gas más barato, aumentando los costos.