Mahanagar Gas Ltd logo

Mahanagar Gas Ltd

MGL NSE

Key Fundamentals

MicrocapGas SupplierOil & Gas
Market Cap
₹10,939 Cr
Volatility
Moderate
P/E Ratio
15.23
EBITDA
₹1,571 Cr
Return on Equity
13.05%
Debt to Equity
0.03
Book Value
₹650.71
EPS
₹121.15
52W High
₹1,378
52W Low
₹900

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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47 extracted metrics + investor summaries across FY15–FY26.

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Tapetide Score

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Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 28.8%

Growth Rate

Revenue Growth
12.59% ↘
Net Income Growth
-19.19% ↘
Cash Flow Change
-17.37% ↘
ROE
-26.06% ↘
ROCE
-23.59% ↘
EBITDA Margin (Avg.)
-19.68% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 46d ago
AI opinion · based on fundamentals
Risk medium

Mahanagar Gas Ltd trades at a PE of 13.6x with a market cap of ~₹11,397 crore, delivering 19% ROE over three and five years but seeing last-year ROE compress to 14% amid rising input costs from APM gas allocation cuts. The company is virtually debt-free and grew volumes ~12-13% in FY25, but TTM profit declined 13% and the stock has fallen 23% over the past year as margin headwinds intensified.

Bull Case 8
  • Virtually debt-free balance sheet provides financial flexibility and insulation from rising interest rate environments
  • Attractive valuation at 13.6x PE and 1.78x PB, well below historical averages for a monopoly-like CGD franchise in Mumbai Metropolitan Region
  • Consistent ROE of 19% over 3-year and 5-year periods demonstrates durable capital efficiency
  • Strong volume growth of ~12-13% in FY25 driven by CNG vehicle additions (1.25 million vehicles served) and expansion to 485 CNG stations and 8,062 km pipeline network
  • Aggressive infrastructure expansion — connected 342,157 new households in FY25 and added 52 CNG stations, expanding total connectivity to over 3 million PNG households
  • Healthy dividend payout of 28.8% with 1.03% yield provides income support while stock trades near multi-year lows
  • Compounded sales CAGR of 15% over 10 years and 19% TTM revenue growth indicate continued top-line momentum
  • EV penetration headwinds in mass-market segment remain limited — CNG adoption continues to surge particularly in autorickshaws, taxis, and commercial vehicles where EV alternatives are less viable
Bear Case 8
  • APM gas allocation cut by 18% in April 2025 (from 51% to 40%), replaced by costlier New Well Gas priced at 12.5% of crude basket vs APM at 10%, directly compressing margins
  • TTM profit declined 13% and Q3 FY25 net profit fell 30% YoY to ₹221 crore as higher gas procurement costs eroded profitability
  • Management projects 7-10% of APM gas to shift to costlier NWG each year, creating a structural and recurring margin headwind
  • Stock has delivered -23% returns over 1 year and 0% CAGR over 5 years, signaling sustained investor de-rating despite volume growth
  • EBITDA margin compressed to 25.1% in Q4 FY24 from 28.6% YoY, and further to 20.3% in Q4 FY25, showing accelerating margin erosion
  • Last-year ROE dropped to 14% from 19% historical average, indicating declining return profile under current cost structure
  • Growing long-term EV competition threat particularly from electric autorickshaws and buses in Mumbai, MGL's core CNG demand segments
  • Single-pipeline supply vulnerability exposed in November 2025 when GAIL pipeline damage shut 164 of 389 CNG stations across Mumbai, Thane, and Navi Mumbai

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 42d ago
Headwinds 3
  • Brent crude surge hurts margins Jun 12

    Brent crude jumped to USD 102/bbl in 1QFY27 from USD 69/bbl in FY26, while spot LNG rose to USD 18/mmbtu from USD 12/mmbtu, significantly contracting margins.

  • Rupee depreciation adds cost pressure Jun 12

    Rupee depreciated 11% YoY in 1QFY27, compounding input cost pressures from elevated gas prices.

  • Stock down 25% over two years Jun 12

    MGL has declined 24.67% over 1 year and 25.19% over 2 years, with a 13% correction in the last 3.5 months due to margin headwinds.

Positives 5
  • Motilal Oswal maintains Buy, 31% upside Jun 12

    Motilal Oswal reiterated BUY with a target price of Rs 1,390 (14x Dec 2027 P/E), implying 31% upside from Rs 1,062.20 current price.

  • 9% volume CAGR expected FY26-28 Jun 12

    Brokerage expects ~9% volume CAGR over FY26-28, supported by high single-digit CNG demand growth, vehicle additions, and bus recovery.

  • CNG price hikes to cushion margins Jun 12

    Rs 5/kg CNG price hikes already taken post-war with further Rs 2-3/kg hikes expected, along with stronger I&C PNG realisations to support earnings.

  • Valuations near -1 SD, re-rating scope Jun 12

    At ~10.8x FY28E P/E (near mean minus 1 standard deviation), valuations appear attractive with scope for re-rating as margin pressures ease.

  • D-PNG conversions up 50% Jun 12

    Domestic PNG conversion momentum has improved 50% versus pre-war levels, with easing execution bottlenecks supporting growth.

Neutral 2
  • Two new VPs appointed July 1 Jun 30

    Mahanagar Gas appointed Sanket Dhotre and Mukesh Panhotra as Vice Presidents effective July 1, 2026, replacing superannuated Chakrapani Atmakur.

  • JM Financial conference attendance Jun 9

    MGL management to attend a virtual JM Financial conference on June 15, 2026; no unpublished price sensitive information to be shared.

TL;DR: MGL faces near-term margin pressure from surging crude/LNG prices and rupee depreciation, which has driven a significant stock correction. However, volume growth remains robust at ~9% CAGR with CNG price hikes and improving D-PNG conversions providing earnings support. Valuations at ~10.8x FY28E P/E are historically attractive. The trend appears to be bottoming out, with margin recovery contingent on input cost stabilisation and further price hikes flowing through.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
1,538
1,571
1,569
1,567
1,590
1,786
1,758
1,963
2,081
2,049
2,058
2,051
2,372
Expenses
1,017
1,092
1,120
1,173
1,171
1,373
1,443
1,568
1,581
1,711
1,706
1,791
2,029
Operating Profit
521
479
449
394
418
413
314
395
501
338
352
260
343
OPM %
34%
30%
29%
25%
26%
23%
18%
20%
24%
16%
17%
13%
14%
Other Income
39
44
48
45
40
47
46
42
32
29
29
29
30
Interest
3
2
3
4
3
3
3
4
4
5
6
5
6
Depreciation
62
66
68
78
72
84
79
95
96
104
103
106
109
PBT
496
454
426
357
384
373
278
338
432
258
272
178
259
Tax %
26%
25%
26%
26%
26%
23%
19%
28%
26%
25%
26%
26%
25%
Net Profit
368
338
317
265
285
287
225
242
320
193
202
132
194
EPS in Rs
37.3
34.27
32.11
26.83
28.81
29.03
22.82
24.53
32.35
19.58
20.45
13.36
19.61
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
2,095
2,078
2,034
2,233
2,791
2,972
2,153
3,560
6,299
6,245
7,261
8,240
8,531
Expenses
1,605
1,569
1,390
1,453
1,906
1,919
1,219
2,636
5,115
4,402
5,691
6,789
7,237
Operating Profit
490
509
644
780
885
1,053
934
924
1,184
1,843
1,570
1,451
1,293
OPM %
23%
24%
32%
35%
32%
35%
43%
26%
19%
30%
22%
18%
15%
Other Income
41
47
53
58
78
99
81
86
112
175
166
119
118
Interest
1
2
1
0
0
7
7
8
9
12
14
21
22
Depreciation
80
83
95
111
126
162
174
196
231
274
352
409
422
PBT
449
472
601
727
837
984
834
806
1,056
1,733
1,371
1,141
967
Tax %
33%
34%
34%
34%
35%
19%
26%
26%
25%
26%
24%
26%
—
Net Profit
301
311
393
478
546
794
620
597
790
1,289
1,041
847
721
EPS in Rs
33.69
34.8
39.83
48.38
55.32
80.33
62.72
60.43
79.98
131
105
85.73
73
Div. Payout %
52%
50%
48%
39%
36%
44%
37%
41%
20%
23%
28%
35%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
89
89
99
99
99
99
99
99
99
99
99
99
Reserves
1,318
1,639
1,741
1,997
2,300
2,854
3,134
3,499
4,035
5,044
5,780
6,335
Borrowings
16
5
3
1
0
67
74
103
115
139
198
219
Other Liabilities
743
637
782
914
1,042
1,109
1,295
1,534
1,783
1,944
2,208
2,312
Total Liabilities
2,166
2,370
2,624
3,010
3,441
4,128
4,601
5,234
6,032
7,226
8,284
8,965
Fixed Assets
1,064
1,129
1,305
1,532
1,763
2,049
2,169
2,614
3,026
3,543
4,844
5,373
CWIP
380
429
412
357
370
487
560
616
709
774
1,062
1,259
Investments
371
393
467
688
654
1,121
1,025
1,088
1,310
1,636
1,178
1,169
Other Assets
350
419
441
434
654
471
847
916
988
1,273
1,200
1,163
Total Assets
2,166
2,370
2,624
3,010
3,441
4,128
4,601
5,234
6,032
7,226
8,284
8,965
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
427
419
532
652
685
985
806
904
969
1,563
1,420
1,147
Investing
-261
-222
-263
-419
-439
-755
-444
-539
-649
-1,267
-1,056
-874
Financing
-176
-191
-284
-226
-235
-242
-349
-310
-285
-312
-341
-368
Net Cash Flow
-10
5
-15
8
12
-11
13
54
35
-15
22
-95
Free Cash Flow
229
204
278
383
322
559
466
256
257
793
249
87
CFO/OP
116
112
112
113
108
116
108
121
104
108
108
97
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
17
16
17
14
13
8
22
19
17
16
18
20
Inventory Days
5
5
8
8
5
5
11
5
3
4
4
4
Days Payable
32
33
43
39
40
35
76
48
26
34
34
31
Cash Conversion Cycle
-10
-12
-18
-16
-22
-21
-44
-24
-7
-13
-11
-6
Working Capital Days
-80
-59
-79
-86
-78
-97
-152
-106
-63
-72
-67
-56
ROCE %
33%
30%
34%
37%
37%
37%
27%
23%
27%
34%
23%
17%

Shareholding Pattern

As of Jun 2026
Promoters 32.50%
FIIs 23.21%
DIIs 22.53%
Government 10.00%
Public 9.99%
Others 1.77%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
32.50%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
30.55%
31.49%
34.20%
25.75%
23.76%
25.48%
23.60%
24.89%
24.14%
23.21%
DIIs
16.75%
17.96%
17.39%
18.99%
17.21%
15.92%
15.47%
15.61%
14.93%
15.16%
15.50%
16.72%
17.40%
16.67%
15.47%
21.10%
23.82%
22.52%
22.89%
20.83%
21.01%
22.53%
Government
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Public
7.82%
8.11%
8.70%
11.11%
13.05%
13.27%
11.66%
10.58%
9.94%
8.62%
9.27%
7.98%
8.03%
7.85%
6.51%
8.70%
8.09%
7.99%
9.32%
10.09%
10.43%
9.99%
Others
32.93%
31.43%
31.41%
27.40%
27.24%
28.30%
30.37%
31.32%
32.62%
33.73%
32.73%
32.80%
1.52%
1.49%
1.33%
1.94%
1.83%
1.51%
1.69%
1.70%
1.92%
1.77%
No. of Shareholders
1,48,404
1,53,827
1,64,038
1,92,455
2,18,221
2,14,250
1,99,724
1,81,222
1,67,717
1,54,383
1,53,582
1,41,617
1,49,718
1,47,540
1,42,738
1,73,905
1,67,650
1,66,589
1,78,576
1,79,761
1,84,373
1,78,033

Documents

Frequently Asked Questions about Mahanagar Gas Ltd

What does Mahanagar Gas Ltd do?
Mahanagar Gas Ltd is engaged in the business of City gas distribution (CGD), presently supplying natural gas in the city of Mumbai including adjoining areas and the Raigad District in the state of Maharashtra.[1]
Where is Mahanagar Gas Ltd (MGL) listed?
Mahanagar Gas Ltd is listed on the Indian stock exchanges. It is listed on NSE: MGL and BSE: 539957. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Mahanagar Gas Ltd belong to?
Mahanagar Gas Ltd operates in the Oil & Gas sector within the Gas Supplier industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Mahanagar Gas Ltd?
Mahanagar Gas Ltd has a market capitalisation of approximately ₹10938.65 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Mahanagar Gas Ltd?
The Price-to-Earnings (PE) ratio of Mahanagar Gas Ltd is 15.23. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Mahanagar Gas Ltd?
Over the past 52 weeks, Mahanagar Gas Ltd has traded between a low of ₹900 and a high of ₹1,378. This range helps investors understand the stock's price volatility and recent trading levels.
Does Mahanagar Gas Ltd pay dividends?
Yes, Mahanagar Gas Ltd has a dividend yield of 2.70%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Mahanagar Gas Ltd?
Mahanagar Gas Ltd has a Return on Equity (ROE) of 13.05%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Mahanagar Gas Ltd on Tapetide?
On Tapetide, you can view Mahanagar Gas Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Mahanagar Gas Ltd is engaged in the business of City gas distribution (CGD), presently supplying natural gas in the city of Mumbai including adjoining areas and the Raigad District in the state of Maharashtra.[1]

Website mahanagargas.com
CEO Mr. Ashu Shinghal
Employees 579
Listed 2016-07-01
Face Value ₹ 10
Issued Size 9,87,77,778

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