A Holistic Look At Mahanagar Gas Limited (NSE:MGL)

Mahanagar Gas Limited (NSE:MGL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of MGL, it is a financially-healthy , dividend-paying company with a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Mahanagar Gas here.

Flawless balance sheet with proven track record and pays a dividend

MGL has a strong track record of performance. In the previous year, MGL delivered an impressive double-digit return of 23% Unsurprisingly, MGL surpassed the Gas Utilities industry return of 20%, which gives us more confidence of the company’s capacity to drive earnings going forward. MGL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that MGL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. MGL currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. MGL has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NSEI:MGL Income Statement, March 13th 2019
NSEI:MGL Income Statement, March 13th 2019

MGL’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

NSEI:MGL Historical Dividend Yield, March 13th 2019
NSEI:MGL Historical Dividend Yield, March 13th 2019

Next Steps:

For Mahanagar Gas, I’ve put together three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MGL’s future growth? Take a look at our free research report of analyst consensus for MGL’s outlook.
  2. Valuation: What is MGL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MGL is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MGL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.