NSEI:MGL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: MGL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

MGL

9.7%

IN Gas Utilities

9.3%

IN Market


1 Year Return

-18.2%

MGL

-28.3%

IN Gas Utilities

-29.6%

IN Market

Return vs Industry: MGL exceeded the Indian Gas Utilities industry which returned -32.4% over the past year.

Return vs Market: MGL exceeded the Indian Market which returned -30.6% over the past year.


Shareholder returns

MGLIndustryMarket
7 Day9.6%9.7%9.3%
30 Day-18.5%-22.0%-23.3%
90 Day-23.4%-27.4%-28.0%
1 Year-16.4%-18.2%-25.6%-28.3%-28.2%-29.6%
3 Year-1.9%-7.8%-4.0%-10.9%-15.8%-20.5%
5 Yearn/a0.8%-9.7%-4.7%-9.6%

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?

13.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGL (₹818.45) is trading below our estimate of fair value (₹943.39)

Significantly Below Fair Value: 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 (10.6x) compared to the Gas Utilities industry average (12.4x).

PE vs Market: MGL is poor value based on its PE Ratio (10.6x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGL is good value based on its PB Ratio (3x) compared to the IN Gas Utilities industry average (4.1x).


Next Steps

Future Growth

How is Mahanagar Gas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.1%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mahanagar Gas has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Mahanagar Gas performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGL has high quality earnings.

Growing Profit Margin: MGL's current net profit margins (25.3%) are higher than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: MGL's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: MGL's earnings growth over the past year (46.9%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: MGL earnings growth over the past year (46.9%) underperformed the Gas Utilities industry 56.8%.


Return on Equity

High ROE: MGL's Return on Equity (28%) is considered high.


Next Steps

Financial Health

How is Mahanagar Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MGL's short term assets (₹14.6B) exceed its short term liabilities (₹9.3B).

Long Term Liabilities: MGL's short term assets (₹14.6B) exceed its long term liabilities (₹2.3B).


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 1%.

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?

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGL's dividend (2.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: MGL's dividend (2.45%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), MGL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Sanjib Datta (57yo)

1.92s

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's total compensation ($USD113.78K) is below average for companies of similar size in the Indian market ($USD464.36K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sanjib Datta
MD & Additional Director1.92yrs₹8.57mno data
Sunil Ranade
Chief Financial Officer5.83yrs₹8.90m0.00045% 363.6k
Srinivasan Murali
Senior Vice President of Operations & Maintenanceno datano datano data
Saghan Srivastava
Company Secretary & Compliance Officer0.17yrno datano data
Chakrapani Atmakur
Vice President of Human Resources & Corporate Communication1.25yrsno datano data
Rajesh Wagle
Senior Vice President of Marketing1.25yrsno datano data
Deepak Sawant
Deputy MD & Additional Whole Time Director0.92yrno datano data
T. Sharnagat
Vice President of Contracts & Procurement and Chief Risk Officer0.83yrno datano data

1.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: MGL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sanjib Datta
MD & Additional Director1.92yrs₹8.57mno data
Deepak Sawant
Deputy MD & Additional Whole Time Director0.92yrno datano data
Radhika Haribhakti
Independent Director3.08yrs₹950.00kno data
Premesh Jain
Independent Director2yrs₹450.00kno data
Ashutosh Karnatak
Non-Executive & Non Independent Chairman0.67yrno datano data
Raj Tewari
Independent Director5.08yrs₹977.50kno data
Syed Hussain
Independent Non-Executive Director0.58yrno datano data

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MGL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹80.795b
  • 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), as well as manufactures gas geysers. As of March 31, 2019, it operated 236 CNG filing stations providing the gas to approximately 0.69 million vehicles; and supplied PNG to approximately 0.95 million domestic, 3,754 commercial, and 70 industrial consumers through a pipeline network of approximately 5,310 kilometers. Mahanagar Gas Limited was founded in 1995 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:12
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.