NSEI:MGL

Stock Analysis Report

Executive Summary

Mahanagar Gas Limited operates as a natural gas distribution company primarily in India.

Snowflake

Fundamentals

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

Share Price & News

How has Mahanagar Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

NSEI:MGL

0.2%

IN Gas Utilities

1.5%

IN Market


1 Year Return

-0.5%

NSEI:MGL

-12.7%

IN Gas Utilities

-11.2%

IN Market

MGL outperformed the Gas Utilities industry which returned -12.7% over the past year.

MGL outperformed the Market in India which returned -11.2% over the past year.


Share holder returns

MGLIndustryMarket
7 Day-1.2%0.2%1.5%
30 Day4.3%-0.8%1.0%
90 Day-2.2%-8.4%-5.6%
1 Year1.7%-0.5%-10.8%-12.7%-9.5%-11.2%
3 Year47.2%38.4%45.3%37.6%19.7%13.7%
5 Yearn/a19.0%5.8%34.6%21.9%

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

Valuation

Is Mahanagar Gas undervalued based on future cash flows and its price relative to the stock market?

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Mahanagar Gas is good value based on earnings compared to the IN Gas Utilities industry average.

Mahanagar Gas is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Mahanagar Gas is poor value based on expected growth next year.


Price Based on Value of Assets

Mahanagar Gas is good value based on assets compared to the IN Gas Utilities industry average.


Next Steps

Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mahanagar Gas's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

Mahanagar Gas's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Mahanagar Gas's revenue growth is positive but not above the India market average.

Mahanagar Gas's earnings growth is positive but not above the India market average.

Mahanagar Gas's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Mahanagar Gas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Mahanagar Gas performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


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 (22.1% vs 16.4%)

Mahanagar Gas's earnings growth has not exceeded the IN Gas Utilities industry average in the past year (22.1% vs 32.3%).


Return on Equity

Mahanagar Gas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Mahanagar Gas used its assets more efficiently than the IN Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Mahanagar Gas has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mahanagar Gas's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Mahanagar Gas has no debt.

Mahanagar Gas has no debt compared to 5 years ago when it was 0.7%.

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.


Balance Sheet

High level of physical assets or inventory.

Mahanagar Gas has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Mahanagar Gas's current dividend yield, its reliability and sustainability?

3.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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 (2.35%).

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

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Sanjib Datta (57yo)

1.3yrs

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

Sanjib's remuneration is lower than average for companies of similar size in India.

Insufficient data for Sanjib to compare compensation growth.


Management Age and Tenure

0.7yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Mahanagar Gas management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

63yo

Average Age

The average tenure for the Mahanagar Gas board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chakrapani Atmakur (52yo)

    Vice President of Human Resources & Corporate Communication

    • Tenure: 0.7yrs
  • Sunil Ranade (57yo)

    Chief Financial Officer

    • Tenure: 5.3yrs
    • Compensation: ₹8.90m
  • Rajesh Wagle (53yo)

    Senior Vice President of Marketing

    • Tenure: 0.7yrs
  • Srinivasan Murali (55yo)

    Senior Vice President of Operations & Maintenance

    • Tenure: 0yrs
  • Sanjib Datta (57yo)

    MD & Additional Director

    • Tenure: 1.3yrs
    • Compensation: ₹8.57m
  • Deepak Sawant (56yo)

    Deputy MD & Additional Whole Time Director

    • Tenure: 0.3yrs
  • T. Sharnagat

    Vice President of Contracts & Procurement and Chief Risk Officer

    • Tenure: 0.3yrs
  • Arvind Kumar

    Company Secretary & Compliance Officer

    • Tenure: 0.08yrs

Board Members

  • Arun Balakrishnan (69yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: ₹1.15m
  • Radhika Haribhakti (62yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹950.00k
  • Santosh Kumar (69yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: ₹1.15m
  • Premesh Jain (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹450.00k
  • Ashutosh Karnatak (59yo)

    Non-Executive & Non Independent Chairman

    • Tenure: 0.08yrs
  • Raj Tewari (65yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹977.50k
  • Sanjib Datta (57yo)

    MD & Additional Director

    • Tenure: 1.3yrs
    • Compensation: ₹8.57m
  • Deepak Sawant (56yo)

    Deputy MD & Additional Whole Time Director

    • Tenure: 0.3yrs
  • Syed Hussain

    Independent Non-Executive Director

    • Tenure: 0yrs

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: ₹83.754b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539957BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2016
MGLNSEI (National Stock Exchange of India)YesEquity SharesININRJul 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 12:54
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.