Mahanagar Gas shares fall most in four years: 2 major reasons behind decline. Will it continue?

Mahanagar Gas share price: Citing regulatory risk to the company, Citi opened a negative catalyst watch on the stock. Will the fall continue?

Mahanagar Gas share price: Shares of Mahanagar Gas fell as much as 10% today (March 6). This comes after brokerage firm Citi downgraded the stock to "sell" from "buy" rating and also cut its price target on the stock to ₹1,405 from ₹1,480 earlier. At present, Mahanagar Gas shares are trading 11% lower at ₹1,395 which marks the biggest single-day drop seen in the stock since March 2020.

Mahanagar Gas share price: Mahanagar Gas cut prices of Compressed Natural Gas (CNG) by ₹2.5 per kilogram in Mumbai.

Mahanagar Gas share price: What Citi said on the stock?

Citing regulatory risk to the company, Citi opened a negative catalyst watch on the stock. The brokerage also said that recent comments by minister Hardeep Singh Puri on how end consumers have failed to fully benefit from the government's gas reforms are concerning. The minister had said that City Gas Distribution companies are continuing to enjoy higher profits but the government may take major steps to ensure benefit of the consumers.

This could mean new concerns over exclusivity and margins to which Mahanagar Gas could be more susceptible considering the premium it enjoys, Citi said.

Mahanagar Gas share price: How is the stock performing?

Mahanagar Gas shares are trading at 13 times financial year 2026 price-to-earnings estimates based on an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA).

Mahanagar Gas share price: CNG price cut in Mumbai

Mahanagar Gas cut prices of Compressed Natural Gas (CNG) by ₹2.5 per kilogram in Mumbai. The company cited a reduction in natural gas prices and revised CNG prices to ₹73.5 per kilogram. This comes as Gujarat Gas reduced prices in the industrial segment last week due to a fall in spot LNG prices.