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Mahanagar Gas

NSEI:MGL
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGL
NSEI
₹87B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

Mahanagar Gas Limited operates as a natural gas distribution company primarily in India. The last earnings update was 40 days ago. More info.


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MGL Share Price and Events
7 Day Returns
-0.2%
NSEI:MGL
-0.2%
IN Gas Utilities
-1.8%
IN Market
1 Year Returns
7.2%
NSEI:MGL
0.5%
IN Gas Utilities
-1.3%
IN Market
MGL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mahanagar Gas (MGL) -0.2% 2.3% -9.3% 7.2% - -
IN Gas Utilities -0.2% 3.5% -1.3% 0.5% 67.6% 40.7%
IN Market -1.8% 3.6% -0% -1.3% 31.8% 41.4%
1 Year Return vs Industry and Market
  • MGL outperformed the Gas Utilities industry which returned 0.5% over the past year.
  • MGL outperformed the Market in India which returned -1.3% over the past year.
Price Volatility
MGL
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mahanagar Gas.

NSEI:MGL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 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.

Calculation of Discount Rate/ Cost of Equity for NSEI:MGL
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 0.41
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.406 (1 + (1- 35%) (0%))
0.602
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 NSEI:MGL 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.

NSEI:MGL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2019 3,590.50 Analyst x8 3,137.73
2020 3,841.35 Analyst x11 2,933.62
2021 4,655.41 Analyst x11 3,106.98
2022 5,812.38 Analyst x4 3,389.96
2023 7,004.33 Analyst x3 3,569.99
2024 8,707.50 Analyst x2 3,878.41
2025 10,147.73 Est @ 16.54% 3,949.93
2026 11,552.48 Est @ 13.84% 3,929.67
2027 12,933.60 Est @ 11.96% 3,844.68
2028 14,308.90 Est @ 10.63% 3,717.13
Present value of next 10 years cash flows ₹35,458.10
NSEI:MGL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹14,308.90 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹223,680.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹223,680.58 ÷ (1 + 14.43%)10
₹58,107.11
NSEI:MGL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹35,458.10 + ₹58,107.11
₹93,565.21
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹93,565.21 / 98.78
₹947.23
NSEI:MGL Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹948.37
Current discount Discount to share price of ₹877.00
= -1 x (₹877.00 - ₹948.37) / ₹948.37
7.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mahanagar Gas is available for.
Intrinsic value
8%
Share price is ₹877 vs Future cash flow value of ₹948.37
Current Discount Checks
For Mahanagar Gas to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mahanagar Gas's share price is below the future cash flow value, but not 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?
Raw Data
NSEI:MGL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹55.31
BSE:539957 Share Price ** BSE (2019-06-17) in INR ₹875.95
India Gas Utilities Industry PE Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 21.83x
India Market PE Ratio Median Figure of 2,826 Publicly-Listed Companies 15.85x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mahanagar Gas.

NSEI:MGL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:539957 Share Price ÷ EPS (both in INR)

= 875.95 ÷ 55.31

15.84x

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?
Raw Data
NSEI:MGL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
6%per year
India Gas Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Gas Utilities Companies 2.5x
India Market PEG Ratio Median Figure of 522 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

NSEI:MGL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.84x ÷ 6%

2.65x

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?
Raw Data
NSEI:MGL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹242.83
BSE:539957 Share Price * BSE (2019-06-17) in INR ₹875.95
India Gas Utilities Industry PB Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 4.52x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 1x
NSEI:MGL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:539957 Share Price ÷ Book Value per Share (both in INR)

= 875.95 ÷ 242.83

3.61x

* 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.
X
Value checks
We assess Mahanagar Gas's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. Mahanagar Gas has a total score of 3/6, 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

 How is Mahanagar Gas expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

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!
Annual Growth Rate
6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mahanagar Gas expected to grow at an attractive rate?
  • 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
Raw Data
NSEI:MGL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MGL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 6%
NSEI:MGL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 8.9%
India Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
India Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average -0.3%
India Market Earnings Growth Rate Market Cap Weighted Average 16.6%
India Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*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
Raw Data
NSEI:MGL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MGL Future Estimates Data
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 34,691 8,032 6,421 17
2020-03-31 31,698 7,334 5,968 19
NSEI:MGL Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Mahanagar Gas's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
  • Mahanagar Gas's revenue is expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MGL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Mahanagar Gas Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MGL Future Estimates Data
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 64.94 73.60 57.10 15.00
2020-03-31 60.41 66.90 55.50 16.00
NSEI:MGL Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mahanagar Gas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Mahanagar Gas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Mahanagar Gas's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 33.5%).
Earnings and Revenue History
Mahanagar Gas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mahanagar Gas Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MGL Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Mahanagar Gas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Mahanagar Gas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Mahanagar Gas Company Filings, last reported 2 months ago.

NSEI:MGL Past Debt and Equity Data
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.
X
Financial health checks
We assess Mahanagar Gas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mahanagar Gas has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.28%
Current annual income from Mahanagar Gas dividends. Estimated to be 3.02% next year.
If you bought ₹2,000 of Mahanagar Gas shares you are expected to receive ₹46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mahanagar Gas's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.53%).
  • Mahanagar Gas's dividend is above the markets top 25% of dividend payers in India (2.04%).
Upcoming dividend payment

Purchase Mahanagar Gas before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
NSEI:MGL Annualized Past and Future Dividends
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 19 Analyst Estimates (S&P Global) See Below
India Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1449 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MGL Future Dividends Estimate Data
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 27.62 13.00
2020-03-31 25.65 13.00
NSEI:MGL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-09 20.000 2.285
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Mahanagar Gas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Mahanagar Gas's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sanjib Datta
AGE 56
TENURE AS CEO 1.1 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:

0.4
Average Tenure
54
Average Age
  • The average tenure for the Mahanagar Gas management team is less than 2 years, this suggests a new team.
Management Team

Sunil Ranade

TITLE
Chief Financial Officer
COMPENSATION
₹8M
AGE
56
TENURE
5 yrs

Sanjib Datta

TITLE
MD & Additional Director
AGE
56
TENURE
1.1 yrs

Srinivasan Murali

TITLE
Senior Vice President of Operations & Maintenance
AGE
54

Anand Upadhyay

TITLE
Interim Company Secretary & Compliance Officer
TENURE
0.1 yrs

Chakrapani Atmakur

TITLE
Vice President of Human Resources & Corporate Communication
AGE
51
TENURE
0.4 yrs

Rajesh Wagle

TITLE
Senior Vice President of Marketing
AGE
52
TENURE
0.4 yrs

Deepak Sawant

TITLE
Deputy MD & Additional Whole Time Director
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the Mahanagar Gas board of directors in years:

1.1
Average Tenure
62
Average Age
  • 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

TITLE
Chairman
AGE
58
TENURE
0.6 yrs

Sanjib Datta

TITLE
MD & Additional Director
AGE
56
TENURE
1.1 yrs

Deepak Sawant

TITLE
Deputy MD & Additional Whole Time Director
TENURE
0.1 yrs

Arun Balakrishnan

TITLE
Independent Director
COMPENSATION
₹877K
AGE
68
TENURE
7.9 yrs

Raj Tewari

TITLE
Independent Director
COMPENSATION
₹785K
AGE
64
TENURE
4.3 yrs

Radhika Haribhakti

TITLE
Independent Director
COMPENSATION
₹722K
AGE
61
TENURE
2.3 yrs

Premesh Jain

TITLE
Independent Director
AGE
63
TENURE
1.2 yrs

Santosh Kumar

TITLE
Independent Director
COMPENSATION
₹1M
AGE
68
TENURE
7.9 yrs

Satish Gavai

TITLE
Non-Executive Director
AGE
59
TENURE
0.9 yrs

Ashu Shinghal

TITLE
Non-Executive Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
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
X
Management checks
We assess Mahanagar Gas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 (NSE:MGL): What Does The Future Look Like?

Generally, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 9.1% in the upcoming year compared with the higher past 5-year average growth rate of 14%. … To get an idea of the overall earnings growth trend for MGL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NSEI:MGL Past and Future Earnings, May 31st 2019 From the current net income level of ₹5.5b and the final forecast of ₹6.8b by 2022, the annual rate of growth for MGL’s earnings is 6.0%.

Simply Wall St -

A Look At The Fair Value Of Mahanagar Gas Limited (NSE:MGL)

How far off is Mahanagar Gas Limited (NSE:MGL) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present 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 -

Mahanagar Gas Limited (NSE:MGL) Earns A Nice Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Is Mahanagar Gas Limited's (NSE:MGL) ROE Of 23% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Mahanagar Gas Limited (NSE:MGL) A Smart Choice For Dividend Investors?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Mahanagar Gas Limited (NSE:MGL) has paid a dividend to shareholders in the last few years. … 5 questions to ask before buying a dividend stock

Simply Wall St -

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. … , dividend-paying company with a

Simply Wall St -

Should We Worry About Mahanagar Gas Limited's (NSE:MGL) P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate Mahanagar Gas's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Kind Of Shareholders Own Mahanagar Gas Limited (NSE:MGL)?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that have been privatized tend to have low insider ownership. … Taking a look at our data on the ownership groups (below), it's seems that

Simply Wall St -

A Look At The Fair Value Of Mahanagar Gas Limited (NSE:MGL)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Do You Know Mahanagar Gas Limited’s (NSE:MGL) Cash Situation?

If you are currently a shareholder in Mahanagar Gas Limited (NSE:MGL), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I will take you through Mahanagar Gas’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Mahanagar Gas generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

Company 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
MGL
Exchange: NSEI
Founded: 1995
₹86,524,394,639
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
Staff numbers
507
Mahanagar Gas employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 13:03
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/13
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.