Mahanagar Gas
Mahanagar Gas Limited operates as a natural gas distribution company primarily in India. The last earnings update was 75 days ago. More info.
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- Mahanagar Gas has significant price volatility in the past 3 months.
539957 Share Price and Events
7 Day Returns
1 Year Returns
539957 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Mahanagar Gas (539957) | -2.9% | -9% | -20.2% | -9.2% | 54.9% | - |
| IN Gas Utilities | -2.5% | -6.1% | -8.9% | -11.4% | 46.7% | 27.5% |
| IN Market | -2.3% | -3.9% | -5% | -5.3% | 17.9% | 31.9% |
1 Year Return vs Industry and Market
- 539957 outperformed the Gas Utilities industry which returned -11.4% over the past year.
- 539957 underperformed the Market in India which returned -5.3% over the past year.
Value
Is Mahanagar Gas undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Mahanagar Gas
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Mahanagar Gas.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.4% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| Gas Utilities Unlevered Beta | Simply Wall St/ S&P Global | 0.35 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.354 (1 + (1- 35%) (0%)) |
0.567 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%) |
14.43% |
Discounted Cash Flow Calculation for BSE:539957 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Mahanagar Gas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 14.43%) |
|
|---|---|---|---|
| 2020 | 3,850.03 | Analyst x8 | 3,364.52 |
| 2021 | 4,655.41 | Analyst x11 | 3,555.31 |
| 2022 | 5,812.38 | Analyst x4 | 3,879.13 |
| 2023 | 7,004.33 | Analyst x3 | 4,085.14 |
| 2024 | 8,707.50 | Analyst x2 | 4,438.07 |
| 2025 | 10,147.73 | Est @ 16.54% | 4,519.91 |
| 2026 | 11,552.48 | Est @ 13.84% | 4,496.72 |
| 2027 | 12,933.60 | Est @ 11.96% | 4,399.47 |
| 2028 | 14,308.90 | Est @ 10.63% | 4,253.51 |
| 2029 | 15,698.08 | Est @ 9.71% | 4,078.00 |
| Present value of next 10 years cash flows | ₹41,069.78 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= ₹15,698.08 × (1 + 7.55%) ÷ (14.43% – 7.55%) |
₹245,396.64 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹245,396.64 ÷ (1 + 14.43%)10 |
₹63,748.45 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹41,069.78 + ₹63,748.45 |
₹104,818.23 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹104,818.23 / 98.78 |
₹1061.15 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹1,061.15 |
| Current discount | Discount to share price of
₹773.75
= -1 x (₹773.75 - ₹1,061.15) / ₹1,061.15 |
27.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Mahanagar Gas's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Mahanagar Gas's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Mahanagar Gas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Mahanagar Gas's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in INR | ₹55.31 |
| BSE:539957 Share Price ** | BSE (2019-07-23) in INR | ₹773.75 |
| India Gas Utilities Industry PE Ratio | Median Figure of 6 Publicly-Listed Gas Utilities Companies | 20.06x |
| India Market PE Ratio | Median Figure of 2,833 Publicly-Listed Companies | 14.23x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Mahanagar Gas.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:539957 Share Price ÷ EPS (both in INR) = 773.75 ÷ 55.31 |
13.99x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mahanagar Gas is good value based on earnings compared to the IN Gas Utilities industry average.
- Mahanagar Gas is good value based on earnings compared to the India market.
Price based on expected Growth
Does
Mahanagar Gas's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.99x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
6.1%per year |
| India Gas Utilities Industry PEG Ratio | Median Figure of 5 Publicly-Listed Gas Utilities Companies | 2.27x |
| India Market PEG Ratio | Median Figure of 538 Publicly-Listed Companies | 1.22x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.99x ÷ 6.1% |
2.3x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mahanagar Gas is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Mahanagar Gas's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in INR | ₹242.83 |
| BSE:539957 Share Price * | BSE (2019-07-23) in INR | ₹773.75 |
| India Gas Utilities Industry PB Ratio | Median Figure of 6 Publicly-Listed Gas Utilities Companies | 4.32x |
| India Market PB Ratio | Median Figure of 3,670 Publicly-Listed Companies | 0.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:539957 Share Price ÷ Book Value per Share (both in INR) = 773.75 ÷ 242.83 |
3.19x |
* Primary Listing of Mahanagar Gas.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mahanagar Gas is good value based on assets compared to the IN Gas Utilities industry average.
Value checks
We assess Mahanagar Gas's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check) Mahanagar Gas has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Mahanagar Gas's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
- Mahanagar Gas's earnings growth is positive but not above the India market average.
- Mahanagar Gas's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:539957 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 6.1% |
| BSE:539957 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 9.2% |
| India Gas Utilities Industry Earnings Growth Rate | Market Cap Weighted Average | 5.7% |
| India Gas Utilities Industry Revenue Growth Rate | Market Cap Weighted Average | -1.5% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 16.7% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 9.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-03-31 | 9,229 | 7,238 | ||
| 2023-03-31 | 35,166 | 8,496 | 6,755 | 1 |
| 2022-03-31 | 37,419 | 8,648 | 6,789 | 4 |
| 2021-03-31 | 35,193 | 8,032 | 6,499 | 18 |
| 2020-03-31 | 31,768 | 7,334 | 5,984 | 19 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 27,911 | 5,464 | |
| 2018-12-31 | 26,555 | 5,177 | |
| 2018-09-30 | 24,842 | 4,934 | |
| 2018-06-30 | 23,215 | 4,819 | |
| 2018-03-31 | 22,330 | 6,521 | 4,779 |
| 2017-12-31 | 21,714 | 4,726 | |
| 2017-09-30 | 20,943 | 4,476 | |
| 2017-06-30 | 20,814 | 4,250 | |
| 2017-03-31 | 20,340 | 5,323 | 3,934 |
| 2016-12-31 | 20,062 | 3,762 | |
| 2016-09-30 | 20,173 | 3,532 | |
| 2016-06-30 | 20,359 | 3,235 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Mahanagar Gas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-03-31 | ||||
| 2023-03-31 | 67.66 | 67.66 | 67.66 | 1.00 |
| 2022-03-31 | 69.80 | 78.00 | 64.79 | 3.00 |
| 2021-03-31 | 65.54 | 73.60 | 57.10 | 17.00 |
| 2020-03-31 | 60.57 | 66.90 | 55.50 | 19.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2019-03-31 | 55.31 |
| 2018-12-31 | 52.41 |
| 2018-09-30 | 49.95 |
| 2018-06-30 | 48.78 |
| 2018-03-31 | 48.38 |
| 2017-12-31 | 47.84 |
| 2017-09-30 | 45.31 |
| 2017-06-30 | 43.03 |
| 2017-03-31 | 39.83 |
| 2016-12-31 | 42.10 |
| 2016-09-30 | 39.54 |
| 2016-06-30 | 36.22 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Mahanagar Gas's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Mahanagar Gas has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Mahanagar Gas performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Mahanagar Gas's year on year earnings growth rate has been positive over the past 5 years.
- Mahanagar Gas's 1-year earnings growth exceeds its 5-year average (14.3% vs 13.7%)
- Mahanagar Gas's earnings growth has not exceeded the IN Gas Utilities industry average in the past year (14.3% vs 35.6%).
Earnings and Revenue History
All data from Mahanagar Gas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 27,910.70 | 5,463.90 | 708.80 | |
| 2018-12-31 | 26,555.07 | 5,177.02 | 933.40 | |
| 2018-09-30 | 24,842.37 | 4,933.72 | 926.60 | |
| 2018-06-30 | 23,214.90 | 4,818.70 | 664.40 | |
| 2018-03-31 | 22,330.07 | 4,778.72 | 919.10 | |
| 2017-12-31 | 21,713.62 | 4,725.68 | 902.57 | |
| 2017-09-30 | 20,942.62 | 4,475.78 | 878.27 | |
| 2017-06-30 | 20,813.92 | 4,250.28 | 861.77 | |
| 2017-03-31 | 20,339.72 | 3,934.28 | 833.27 | |
| 2016-12-31 | 20,062.26 | 3,761.57 | 942.58 | |
| 2016-09-30 | 20,173.36 | 3,532.17 | 924.48 | |
| 2016-06-30 | 20,358.56 | 3,235.47 | 930.28 | |
| 2016-03-31 | 20,782.97 | 3,108.87 | 777.65 | |
| 2015-03-31 | 20,782.77 | 3,010.01 | 848.07 | |
| 2014-03-31 | 18,698.83 | 2,972.49 | 677.10 | |
| 2013-03-31 | 14,985.33 | 2,985.06 | 574.10 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Mahanagar Gas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Mahanagar Gas used its assets more efficiently than the IN Gas Utilities industry average last year based on Return on Assets.
- Mahanagar Gas has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Mahanagar Gas's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Mahanagar Gas has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Mahanagar Gas's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Mahanagar Gas's finances.
The net worth of a company is the difference between its assets and liabilities.
- Mahanagar Gas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Mahanagar Gas's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Mahanagar Gas has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Mahanagar Gas Company Filings, last reported 3 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 23,988.70 | 0.00 | 10,303.50 |
| 2018-12-31 | 22,301.90 | 0.00 | 9,610.90 |
| 2018-09-30 | 22,301.90 | 0.00 | 9,610.90 |
| 2018-06-30 | 20,953.50 | 12.00 | 8,274.80 |
| 2018-03-31 | 20,953.46 | 11.95 | 7,827.34 |
| 2017-12-31 | 19,601.30 | 11.90 | 8,068.00 |
| 2017-09-30 | 19,601.30 | 11.90 | 8,068.00 |
| 2017-06-30 | 18,400.37 | 27.00 | 6,027.34 |
| 2017-03-31 | 18,400.37 | 27.00 | 6,027.34 |
| 2016-12-31 | 17,332.50 | 43.80 | 5,843.70 |
| 2016-09-30 | 17,332.50 | 43.80 | 5,843.70 |
| 2016-06-30 | 15,279.75 | 138.12 | 5,602.85 |
| 2016-03-31 | 17,284.28 | 49.83 | 5,681.65 |
| 2015-03-31 | 14,074.65 | 155.88 | 5,163.83 |
| 2014-03-31 | 12,969.58 | 79.83 | 4,308.72 |
| 2013-03-31 | 11,826.28 | 98.33 | 3,681.42 |
- Mahanagar Gas has no debt.
- Mahanagar Gas has no debt compared to 5 years ago when it was 0.6%.
- Mahanagar Gas has no debt, it does not need to be covered by operating cash flow.
- Mahanagar Gas has no debt, therefore coverage of interest payments is not a concern.
Financial health checks
We assess Mahanagar Gas's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Mahanagar Gas has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Mahanagar Gas's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Mahanagar Gas
shares you are expected to receive
₹52
in your first year as a dividend.
Dividend Amount
- Mahanagar Gas's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).
- Mahanagar Gas's dividend is above the markets top 25% of dividend payers in India (2.33%).
Upcoming dividend payment
Purchase Mahanagar Gas before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| India Gas Utilities Industry Average Dividend Yield | Market Cap Weighted Average of 6 Stocks | 1.8% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1446 Stocks | 1.5% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.6% |
| India Top 25% Dividend Yield | 75th Percentile | 2.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2024-03-31 | ||
| 2023-03-31 | ||
| 2022-03-31 | 25.05 | 3.00 |
| 2021-03-31 | 27.79 | 14.00 |
| 2020-03-31 | 25.84 | 14.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-09 | 20.000 | 2.363 |
| 2019-01-29 | 20.500 | 2.176 |
| 2018-11-13 | 20.500 | 2.337 |
| 2018-08-23 | 19.000 | 2.290 |
| 2018-05-21 | 19.000 | 2.236 |
| 2018-02-09 | 19.000 | 1.998 |
| 2017-08-09 | 19.000 | 1.731 |
| 2017-02-13 | 16.000 | 1.682 |
| 2016-09-27 | 17.500 | 2.257 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mahanagar Gas has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
- Dividend payments have increased, but Mahanagar Gas only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of
Mahanagar Gas's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.8x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
Income/ dividend checks
We assess Mahanagar Gas's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Mahanagar Gas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Mahanagar Gas has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| AGE | 57 |
| TENURE AS CEO | 1.2 years |
CEO Bio
Mr. Sanjib Datta serve as Managing Director & Director of Mahanagar Gas Ltd. since May 30, 2018. Mr. Datta served as a Director of ONGC Petro additions Limited since January 18, 2017 until June 19, 2018. Mr. Datta has been heading the Business Development functions in GAIL (India) Limited as an Executive Director. He served as Deputy General Manager of LNG at Ratnagiri Gas and Power Private Limited. He has 32+ years of experience in handling multifarious assignments in the natural gas sector covering diverse functions like, Business Development, Marketing, Project Development and Construction as well as Operation & Maintenance of Pipelines and LNG Terminal. His assignments in GAIL covered Merger & Acquisition initiatives as well as steering of Globalization and Diversification efforts. He steered GAIL to its successful participation in a shale gas asset in USA and also headed the team instrumental in finalizing the gas supplies and tolling service agreements pertaining to the LNG liquefaction project at Cove Point. Mr. Datta also handled GAIL's initiatives to import of gas into India through the TAPI pipeline apart from overseeing GAIL's investments in China, Egypt and Myanmar in the areas of city gas distribution and cross country pipeline. In India, Mr. Datta has led GAIL's forays into the solar business and has also steered GAIL's initiatives in diverse areas, like, floating LNG regasification terminals, LNG shipping, gas based power generation, petrochemicals and specialty chemicals etc. As a Project Manager, he had handled GAIL's participation in the restructuring and revival of the Dabhol Project after departure of Ratnagiri. Mr. Datta has rich board level experience and has served on the Boards of GAIL Global (USA) Inc., a wholly owned subsidiary of GAIL through which GAIL is channelizing its business initiatives in E&P and LNG sourcing in USA and also on those of South East Asia Gas Pipeline Company, TAPI Pipeline Company Limited, National Gas Company Limited and Fayum Gas Limited.
CEO Compensation
- Insufficient data for Sanjib to compare compensation growth.
- Insufficient data for Sanjib to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the Mahanagar Gas management team in years:
- The average tenure for the Mahanagar Gas management team is less than 2 years, this suggests a new team.
Management Team
Sunil Ranade
Chief Financial Officer
₹8M
57
5.1 yrs
Sanjib Datta
MD & Additional Director
57
1.2 yrs
Srinivasan Murali
Senior Vice President of Operations & Maintenance
55
Anand Upadhyay
Interim Company Secretary & Compliance Officer
0.2 yrs
Chakrapani Atmakur
Vice President of Human Resources & Corporate Communication
52
0.5 yrs
Rajesh Wagle
Senior Vice President of Marketing
53
0.5 yrs
Deepak Sawant
Deputy MD & Additional Whole Time Director
0.2 yrs
T. Sharnagat
Vice President of Contracts & Procurement and Chief Risk Officer
0.1 yrs
Board of Directors Tenure
Average tenure and age of the Mahanagar Gas board of directors in years:
- The average tenure for the Mahanagar Gas board of directors is less than 3 years, this suggests a new board.
Board of Directors
Bhuwan Tripathi
Chairman
59
0.7 yrs
Sanjib Datta
MD & Additional Director
57
1.2 yrs
Deepak Sawant
Deputy MD & Additional Whole Time Director
0.2 yrs
Arun Balakrishnan
Independent Director
₹877K
69
8 yrs
Raj Tewari
Independent Director
₹785K
65
4.3 yrs
Radhika Haribhakti
Independent Director
₹722K
62
2.3 yrs
Premesh Jain
Independent Director
64
1.3 yrs
Santosh Kumar
Independent Director
₹1M
69
8 yrs
Satish Gavai
Non-Executive Director
60
1 yrs
Ashu Shinghal
Non-Executive Director
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 24. Aug 18 | Sell | Royal Dutch Shell plc | Company | 23. Aug 18 | 23. Aug 18 | -12,500,000 | ₹852.14 | ₹-10,651,791,699 | ||
Management checks
We assess Mahanagar Gas's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Mahanagar Gas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Mahanagar Gas Limited (BOM:539957) Investors Are Paying Above The Intrinsic Value
Today, I will calculate the stock's intrinsic value. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleCompany Info
Description
Mahanagar Gas Limited operates as a natural gas distribution company primarily in India. The company offers domestic piped natural gas (PNG), commercial PNG, industrial PNG, and compressed natural gas (CNG), as well as manufactures gas geysers. As of March 31, 2018, it operated 223 CNG filing stations providing the gas to approximately 0.61 million vehicles; and supplied PNG to approximately 0.95 million domestic, 3,537 commercial, and 67 industrial consumers through a pipeline network of approximately 5,042 kilometers. Mahanagar Gas Limited was founded in 1995 and is based in Mumbai, India.
Details
| Name: | Mahanagar Gas Limited |
| 539957 | |
| Exchange: | BSE |
| Founded: | 1995 |
| ₹75,476,100,169 | |
| 98,777,778 | |
| Website: | http://www.mahanagargas.com |
| Address: |
Mahanagar Gas Limited MGL House, Block G-33, Mumbai, Maharashtra, 400051, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 539957 | Equity Shares | Mumbai Stock Exchange | IN | INR | 01. Jul 2016 | |
| NSEI | MGL | Equity Shares | National Stock Exchange of India | IN | INR | 01. Jul 2016 |
Number of employees
Current staff
Industry
| Gas Utilities | |
| Utilities |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/23 13:02 |
| End of day share price update: | 2019/07/23 00:00 |
| Last estimates confirmation: | 2019/07/10 |
| Last earnings filing: | 2019/05/09 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2019/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
