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.

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

6.2%

MGL

2.4%

IN Gas Utilities

3.1%

IN Market


1 Year Return

18.7%

MGL

-2.6%

IN Gas Utilities

3.7%

IN Market

Return vs Industry: MGL exceeded the Indian Gas Utilities industry which returned -2.6% over the past year.

Return vs Market: MGL exceeded the Indian Market which returned 3.7% over the past year.


Shareholder returns

MGLIndustryMarket
7 Day6.2%2.4%3.1%
30 Day17.1%2.6%5.7%
90 Day25.4%0.5%1.4%
1 Year21.4%18.7%-0.6%-2.6%5.9%3.7%
3 Year36.6%28.4%35.1%28.0%22.3%16.0%
5 Yearn/a25.5%11.8%42.5%28.9%

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 compared to its fair value and its price relative to the market?

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MGL (₹974.85) is trading below our estimate of fair value (₹1237.8)

Significantly Undervalued: 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 (16.4x) compared to the Gas Utilities industry average (19.6x).

PE vs Market: MGL is poor value based on its PE Ratio (16.4x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: MGL is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: MGL is good value based on its PB Ratio (4x) compared to the IN Gas Utilities industry average (4.8x).


Next Steps

Future Growth

How is Mahanagar Gas forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGL's forecast earnings growth (6.2% per year) is below the savings rate (7.6%).

Earnings vs Market: MGL's earnings (6.2% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: MGL's earnings are forecast to grow, but not significantly.

Revenue vs Market: MGL's revenue (6.8% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: MGL's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MGL's Return on Equity is forecast to be high in 3 years time (23.4%)


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

Earnings Trend: MGL's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: MGL's earnings growth over the past year (22.1%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: MGL earnings growth over the past year (22.1%) underperformed the Gas Utilities industry 32.3%.


Return on Equity

High ROE: MGL's Return on Equity (24.5%) is considered high.


Return on Assets

ROA vs Industry: MGL has a higher Return on Assets than the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: MGL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mahanagar Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MGL's short term assets (₹11.8B) exceeds its short term liabilities (₹8.2B)

Long Term Liabilities: MGL's short term assets (11.8B) exceeds its long term liabilities (2.2B)


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 0.7%.

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?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.8%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MGL's dividend (2.05%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: MGL's dividend (2.05%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), MGL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGL's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Sanjib Datta (57yo)

1.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Insufficient data to compare Sanjib's compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: MGL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MGL's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Chakrapani Atmakur (52yo)

    Vice President of Human Resources & Corporate Communication

    • Tenure: 0.8yrs
  • Sunil Ranade (57yo)

    Chief Financial Officer

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

    Senior Vice President of Marketing

    • Tenure: 0.8yrs
  • Srinivasan Murali (55yo)

    Senior Vice President of Operations & Maintenance

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

    MD & Additional Director

    • Tenure: 1.4yrs
    • Compensation: ₹8.57m
  • Deepak Sawant (56yo)

    Deputy MD & Additional Whole Time Director

    • Tenure: 0.4yrs
  • Anand Upadhyay

    Company Secretary & Compliance Officer

    • Tenure: 0.08yrs
  • T. Sharnagat

    Vice President of Contracts & Procurement and Chief Risk Officer

    • Tenure: 0.3yrs

Board Members

  • Radhika Haribhakti (62yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹950.00k
  • Premesh Jain (64yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: ₹450.00k
  • Ashutosh Karnatak (59yo)

    Non-Executive & Non Independent Chairman

    • Tenure: 0.2yrs
  • Raj Tewari (65yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹977.50k
  • Sanjib Datta (57yo)

    MD & Additional Director

    • Tenure: 1.4yrs
    • Compensation: ₹8.57m
  • Deepak Sawant (56yo)

    Deputy MD & Additional Whole Time Director

    • Tenure: 0.4yrs
  • Syed Hussain

    Independent Non-Executive Director

    • Tenure: 0.08yrs

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: ₹96.753b
  • 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 Analysis2019/10/17 12:56
End of Day Share Price2019/10/17 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.