Mahanagar gas is the sole supplier of CNG (Compressed natural gas) and PNG (Pipeline natural gas) in the financial capital of India Mumbai and adjoining areas like Thane, Navi Mumbai and Raigad district.

GEPL Capital Research has recommended 'Subscribe' to IPO of Mahanagar Gas. Commenting on the investment rationale, the stock broker said, ''Mahanagar Gas stands to gain from operating leverage and also rise in the CNG and PNG business. At a P/E of 13.4x we believe that Mahanagar a discount to its domestic. We assign a Subscribe rating to the IPO. Rise in the crude prices may affect the company negatively. This can also affect the operating margins. Fluctuations in the US dollar and Indian rupee will have adverse impact on the company revenue realization. Rise in the inflation also affect the business. It also affect the primary cost of setting up and maintenance of the CGD infrastructure.''

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