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IGL, MGL and Gujarat Gas shares may face pressure on Monday. Big news came on Friday (the stock market was closed on November 15 due to Guru Nanak Jayanti). The news is that the government has taken a big decision. This decision has been taken regarding gas companies. This decision can directly affect the profits of the companies. The government has reduced the domestic natural gas allocation to these companies by 20% to almost 50%.
Let us tell you in detail.... IGL says that GAIL has reduced gas allocation by 20 percent. This decision will come into effect from November 16, 2024. This decision will have a direct impact on IGL's profits. IGL itself has given this information.
This clearly means that unless these companies increase the price of CNG, their margins will be affected. Hence, profits are expected to fall.
CNG will have to be made expensive - These companies will have to increase the price by Rs 6 in the CNG segment to maintain margins and if this happens, the volume will be affected.
If the price is not increased, then 32% of IGL's, 20% of MGL's and 24% of Gujarat Gas's income will be dented.
But if prices are increased, then the volume will be affected. On this, experts say that in view of the assembly elections, the possibility of price increase is limited.
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