It is also preparing to expand its area of operations by participating in the CGD bidding under the supervision of PNGRB (although it did not win any new area in the recently concluded ninth round of bidding). Government’s push towards electric vehicles and risk of change in regulations of PNGRB, MoPNG, and other regulatory authorities persists (for example change in bidding norms for CNG and PNG retail license, changes in pipeline tariff formula, etc). Threat of alternate fuels becoming more cost effective, thereby impacting MGL’s volume, cannot be overlooked either. On balance, we assign ‘accumulate’ rating on the stock with target price of Rs 1087 (previous target Rs 1093) based on 17x FY20e EPS of Rs 63.97. For more information, refer to our May 2018 report.