India, Feb. 10 -- A small cap stock where the company is in the business of gas distribution and is presently supplying natural gas in the city of Mumbai has been given a buy rating by Motilal Oswal Financial Services. The broker has given a target of Rs 1535, which creates a 43 percent upside potential from the current market price.

With a market cap more than Rs 10,500 Cr, Mahanagar Gas is the stock in context, and this stock has given a compounded return of 7 percent in the last three years.

Brokerage View The brokerage states that, Mahanagar Gas Ltd or MAHGL has seen a 21 percent stock correction over six months due to higher Henry Hub gas prices, rupee depreciation of around 6 percent YoY, and tariff hikes impacting margins. Howeve...