Executive Summary
Mahanagar Gas Limited operates as a natural gas distribution company primarily in India.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
Share Price & News
How has Mahanagar Gas's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.7%
MGL
-6.8%
IN Gas Utilities
-2.9%
IN Market
1 Year Return
-22.8%
MGL
-31.7%
IN Gas Utilities
-29.3%
IN Market
Return vs Industry: MGL exceeded the Indian Gas Utilities industry which returned -32.3% over the past year.
Return vs Market: MGL exceeded the Indian Market which returned -29.2% over the past year.
Shareholder returns
| MGL | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | -6.8% | -2.9% |
| 30 Day | -23.3% | -29.1% | -26.5% |
| 90 Day | -22.1% | -28.4% | -28.5% |
| 1 Year | -21.1%-22.8% | -29.1%-31.7% | -27.9%-29.3% |
| 3 Year | -3.2%-9.0% | -9.5%-16.0% | -15.4%-20.0% |
| 5 Year | n/a | 1.2%-9.2% | -3.3%-8.3% |
Price Volatility Vs. Market
How volatile is Mahanagar Gas's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At Mahanagar Gas Limited's (NSE:MGL) P/E Ratio1 week ago | Simply Wall St
Taking A Look At Mahanagar Gas Limited's (NSE:MGL) ROE3 weeks ago | Simply Wall St
Is It Smart To Buy Mahanagar Gas Limited (NSE:MGL) Before It Goes Ex-Dividend?Valuation
Is Mahanagar Gas undervalued compared to its fair value and its price relative to the market?
14.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGL (₹814.55) is trading below our estimate of fair value (₹947.12)
Significantly Below Fair Value: MGL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MGL is good value based on its PE Ratio (10.6x) compared to the Gas Utilities industry average (12.7x).
PE vs Market: MGL is poor value based on its PE Ratio (10.6x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MGL's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MGL is good value based on its PB Ratio (3x) compared to the IN Gas Utilities industry average (4.1x).
Next Steps
Future Growth
How is Mahanagar Gas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
6.4%
Forecasted Utilities industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mahanagar Gas has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Mahanagar Gas is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Mahanagar Gas competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Utilities industry.
Past Performance
How has Mahanagar Gas performed over the past 5 years?
19.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGL has high quality earnings.
Growing Profit Margin: MGL's current net profit margins (25.3%) are higher than last year (19.5%).
Past Earnings Growth Analysis
Earnings Trend: MGL's earnings have grown by 19.5% per year over the past 5 years.
Accelerating Growth: MGL's earnings growth over the past year (46.9%) exceeds its 5-year average (19.5% per year).
Earnings vs Industry: MGL earnings growth over the past year (46.9%) underperformed the Gas Utilities industry 56.8%.
Return on Equity
High ROE: MGL's Return on Equity (28%) is considered high.
Next Steps
Financial Health
How is Mahanagar Gas's financial position?
Financial Position Analysis
Short Term Liabilities: MGL's short term assets (₹14.6B) exceed its short term liabilities (₹9.3B).
Long Term Liabilities: MGL's short term assets (₹14.6B) exceed its long term liabilities (₹2.3B).
Debt to Equity History and Analysis
Debt Level: MGL is debt free.
Reducing Debt: MGL has no debt compared to 5 years ago when its debt to equity ratio was 1%.
Debt Coverage: MGL has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MGL has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: MGL has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if MGL's debt is covered by short term assets.
Next Steps
Dividend
What is Mahanagar Gas's current dividend yield, its reliability and sustainability?
2.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGL's dividend (2.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: MGL's dividend (2.46%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).
Stability and Growth of Payments
Stable Dividend: MGL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MGL's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26%), MGL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Sanjib Datta (57yo)
1.83s
Tenure
₹8,573,604
Compensation
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. M ...
CEO Compensation Analysis
Compensation vs Market: Sanjib's total compensation ($USD113.75K) is below average for companies of similar size in the Indian market ($USD468.15K).
Compensation vs Earnings: Insufficient data to compare Sanjib's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Additional Director | 1.83yrs | ₹8.57m | no data | |
| Chief Financial Officer | 5.75yrs | ₹8.90m | 0.00045% ₹361.9k | |
| Senior Vice President of Operations & Maintenance | no data | no data | no data | |
| Company Secretary & Compliance Officer | 0.083yr | no data | no data | |
| Vice President of Human Resources & Corporate Communication | 1.17yrs | no data | no data | |
| Senior Vice President of Marketing | 1.17yrs | no data | no data | |
| Deputy MD & Additional Whole Time Director | 0.83yr | no data | no data | |
| Vice President of Contracts & Procurement and Chief Risk Officer | 0.75yr | no data | no data |
1.2yrs
Average Tenure
55.5yo
Average Age
Experienced Management: MGL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Additional Director | 1.83yrs | ₹8.57m | no data | |
| Deputy MD & Additional Whole Time Director | 0.83yr | no data | no data | |
| Independent Director | 3yrs | ₹950.00k | no data | |
| Independent Director | 1.92yrs | ₹450.00k | no data | |
| Non-Executive & Non Independent Chairman | 0.58yr | no data | no data | |
| Independent Director | 5yrs | ₹977.50k | no data | |
| Independent Non-Executive Director | 0.50yr | no data | no data |
1.8yrs
Average Tenure
60.5yo
Average Age
Experienced Board: MGL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Mahanagar Gas Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mahanagar Gas Limited
- Ticker: MGL
- Exchange: NSEI
- Founded: 1995
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: ₹80.415b
- Shares outstanding: 98.78m
- Website: https://www.mahanagargas.com
Number of Employees
Location
- Mahanagar Gas Limited
- MGL House
- Block G-33
- Mumbai
- Maharashtra
- 400051
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 539957 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jul 2016 |
| MGL | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jul 2016 |
Biography
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, 2019, it operated 236 CNG filing stations providing the gas to approximately 0.69 million vehicles; and supplied PNG to approximately 0.95 million domestic, 3,754 commercial, and 70 industrial consumers through a pipeline network of approximately 5,310 kilometers. Mahanagar Gas Limited was founded in 1995 and is based in Mumbai, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 13:31 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.