The brokerage reportedly maintained 'outperform' on Gujarat Gas and hiked price target to Rs 240 from Rs 210. It hiked FY21/22 EPS estimates for the company by 13-15% on better margins and steady volumes.

The brokerage expects steady sales in Morbi as management plans to augment throughput capacity over the next five years. It further presumes LNG prices to remain soft due to excess supply.

Shares of Gujarat Gas surged 5.10% to Rs 200.85.

Gujarat Gas' presence is spread across 23 districts in the state of Gujarat, Union Territory of Dadra & Nagar Haveli and Thane Geographical Area (GA) (excluding already authorized areas) which includes Palghar District of Maharashtra.

On Mahanagar Gas, the brokerage reportedly maintained 'outperform' and hiked price target to Rs 1,150 from Rs 1,050. It hiked FY21/22 EPS estimates for the company by 7-11% on better margins and steady volumes.

The brokerage expects lower domestic gas and LNG prices in near to medium term to support premium margins.

The Mahanagar Gas scrip rose 1.26% to Rs 1049.50.

Mahanagar Gas has sole authorisation to distribute compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, its adjoining areas and the Raigad district in the state of Maharashtra, India.