Mahanagar Gas Limited

NSEI:MGL Stock Report

Market Cap: ₹114.3b

Mahanagar Gas Valuation

Is MGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MGL (₹1157.5) is trading above our estimate of fair value (₹958.73)

Significantly Below Fair Value: MGL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGL?

Key metric: As MGL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MGL. This is calculated by dividing MGL's market cap by their current earnings.
What is MGL's PE Ratio?
PE Ratio10x
Earnings₹11.42b
Market Cap₹114.34b

Price to Earnings Ratio vs Peers

How does MGL's PE Ratio compare to its peers?

The above table shows the PE ratio for MGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.1x
IGL Indraprastha Gas
11.9x1.8%₹218.9b
GSPL Gujarat State Petronet
12.3x-21.6%₹187.4b
GUJGASLTD Gujarat Gas
25x15.0%₹317.9b
ATGL Adani Total Gas
95.4xn/a₹669.9b
MGL Mahanagar Gas
10x1.1%₹114.3b

Price-To-Earnings vs Peers: MGL is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (36.1x).

Price to Earnings Ratio vs Industry

How does MGL's PE Ratio compare vs other companies in the Asian Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MGL 10.0xIndustry Avg. 13.3xNo. of Companies12PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGL is good value based on its Price-To-Earnings Ratio (10x) compared to the Asian Gas Utilities industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is MGL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: MGL is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,157.50
₹1,610.79
+39.2%
19.7%₹2,320.00₹1,040.00n/a28
Nov ’25₹1,446.05
₹1,695.79
+17.3%
16.9%₹2,320.00₹1,100.00n/a28
Oct ’25₹1,915.20
₹1,829.07
-4.5%
19.4%₹2,400.00₹1,160.00n/a29
Sep ’25₹1,792.10
₹1,774.50
-1.0%
19.2%₹2,302.00₹1,160.00n/a28
Aug ’25₹1,824.55
₹1,760.45
-3.5%
19.1%₹2,302.00₹1,160.00n/a29
Jul ’25₹1,746.80
₹1,468.28
-15.9%
14.1%₹1,859.00₹1,070.00n/a29
Jun ’25₹1,298.00
₹1,449.41
+11.7%
13.0%₹1,680.00₹1,070.00n/a29
May ’25₹1,443.50
₹1,427.79
-1.1%
15.4%₹1,740.00₹960.00n/a29
Apr ’25₹1,385.00
₹1,406.17
+1.5%
15.2%₹1,665.00₹960.00n/a29
Mar ’25₹1,498.85
₹1,389.66
-7.3%
16.8%₹1,665.00₹925.00n/a29
Feb ’25₹1,463.50
₹1,386.55
-5.3%
16.7%₹1,665.00₹925.00n/a29
Jan ’25₹1,203.65
₹1,211.44
+0.6%
11.7%₹1,411.00₹895.00n/a27
Dec ’24₹1,063.10
₹1,211.93
+14.0%
11.5%₹1,411.00₹895.00n/a28
Nov ’24₹1,004.00
₹1,211.93
+20.7%
11.5%₹1,411.00₹895.00₹1,446.0528
Oct ’24₹1,028.85
₹1,200.61
+16.7%
12.3%₹1,411.00₹871.00₹1,915.2028
Sep ’24₹1,030.30
₹1,186.52
+15.2%
12.9%₹1,411.00₹871.00₹1,792.1029
Aug ’24₹1,120.95
₹1,172.89
+4.6%
12.2%₹1,350.00₹871.00₹1,824.5527
Jul ’24₹1,048.50
₹1,164.92
+11.1%
12.0%₹1,350.00₹871.00₹1,746.8026
Jun ’24₹1,069.00
₹1,159.28
+8.4%
12.1%₹1,350.00₹871.00₹1,298.0025
May ’24₹1,008.65
₹1,071.13
+6.2%
10.7%₹1,280.00₹825.00₹1,443.5024
Apr ’24₹983.45
₹1,043.50
+6.1%
10.7%₹1,280.00₹825.00₹1,385.0024
Mar ’24₹903.95
₹1,001.63
+10.8%
11.4%₹1,280.00₹642.00₹1,498.8527
Feb ’24₹880.70
₹993.11
+12.8%
11.8%₹1,280.00₹642.00₹1,463.5027
Jan ’24₹838.25
₹990.93
+18.2%
11.8%₹1,280.00₹642.00₹1,203.6527
Dec ’23₹899.75
₹973.22
+8.2%
12.7%₹1,280.00₹642.00₹1,063.1027
Nov ’23₹865.80
₹963.07
+11.2%
12.8%₹1,280.00₹642.00₹1,004.0028

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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