The Indian gas distribution companies are the best way to play the gas theme, according to Nomura. All the gas distribution companies have near monopolies in their respective areas of operation, the global brokerage said. Rising pollution concerns will mean that there will be a better outlook for city gas distribution (CGD) companies, it added.

Nomura has a buy call on Indraprastha Gas Ltd (IGL) with a target price of Rs 650. The brokerage house has initiated coverage on Gujarat Gas and Mahanagar Gas Ltd (MGL) with a target price of Rs 475 and Rs 1,300 respectively.

CNBC-TV18’s Nimesh Shah has more details.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

(Edited by : Ajay Vaishnav)

First Published:Jan 5, 2021 10:31 AM IST