Stocks to buy, March 20 -- Shares of Mahanagar Gas (MGL) have jumped 7.45% to Rs.1,380 over the last six months, while Indraprastha Gas (IGL) has declined by 3% during the same period. However, both stocks have outperformed the benchmark Sensex by 14% and 6%, respectively.

This outperformance, analysts believe, could be attributed to the partial reversal of the earlier reduction in domestic gas allocation to the City Gas Distribution (CGD) sector.

Going forward, domestic brokerage HDFC Securities expects both companies to benefit from the replacement of expensive spot gas purchases with cheaper HPHT domestic gas, continued strong CNG vehicle registrations, and accelerated expansion of retail outlets and customer additions in the industr...