Mahanagar Gas Ltd logo

Mahanagar Gas Ltd

MGL NSE

Key Fundamentals

MicrocapGas SupplierOil & Gas
Market Cap
₹11,797 Cr
Volatility
Moderate
P/E Ratio
13.7
EBITDA
₹1,446 Cr
Return on Equity
24.86%
Debt to Equity
0.03
Book Value
₹650.71
EPS
₹121.15
52W High
₹1,586.9
52W Low
₹900

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
10.97% ↗
Net Income Growth
-13.31% ↗
Cash Flow Change
-10.34% ↘
ROE
-29.34% ↗
ROCE
-30.99% ↗
EBITDA Margin (Avg.)
-26.06% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
AI opinion · based on fundamentals
Risk medium
HOLD Worth holding, not adding Conviction 6/10

Mahanagar Gas trades at an attractive PE of 14.6x with a debt-free balance sheet and consistent 19% ROE over 5 years, but TTM profit decline of -13% and negative 1-year stock CAGR of -11% signal near-term headwinds. With 70% analyst buy ratings, the risk-reward is balanced but warrants patience.

Bull Case 8
  • Attractive valuation at PE of 14.6x, well below typical FMCG and consumer sector multiples, offering margin of safety
  • Virtually debt-free balance sheet reduces financial risk and interest burden in a rising rate environment
  • Consistent ROE of 19% over both 3-year and 5-year periods demonstrates strong capital efficiency
  • Strong analyst consensus with 70% buy ratings (21 out of 30 analysts recommending buy)
  • Robust 10-year compounded sales CAGR of 15% reflects structural demand growth for city gas distribution
  • Healthy dividend payout ratio of 28.8% with current yield of 0.96% provides income support
  • TTM sales growth of 19% indicates continued top-line momentum despite profit compression
  • Price-to-book of 1.92x is reasonable for an asset-heavy utility with established infrastructure
Bear Case 8
  • TTM compounded profit declined -13%, signaling margin compression likely from higher gas input costs
  • Negative 1-year stock CAGR of -11% reflects sustained underperformance and weak sentiment
  • Last year ROE dropped to 14% from 5-year average of 19%, a significant 500 basis point deterioration
  • Modest 5-year stock CAGR of just 2% indicates prolonged period of poor shareholder returns
  • 3-year compounded profit CAGR of only 2% versus 9% sales CAGR shows persistent margin erosion
  • 10% of analysts (3 out of 30) have sell ratings, indicating some institutional skepticism
  • Dividend yield of 0.96% is below fixed deposit rates, limiting appeal for income-seeking investors
  • Market cap of Rs 12,153 crore is mid-cap territory, exposing stock to higher volatility in risk-off markets

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

AI News Digest

Anthropic anthropic claude-opus-4.6 15h ago
Headwinds 6
  • Severe margin compression Jun 04

    Operating profit margin fell from 21.6% in FY25 to 17.6% in FY26, with Q4 FY26 OPM at 12.7% vs 20.1% in Q4 FY25. Broker expects further compression to ~16% in FY27 due to volatile gas costs from US-Iran war.

  • Crude and LNG cost surge Jun 12

    Brent crude surged to $102/bbl in 1QFY27 vs $69/bbl in FY26, spot LNG rose to $18/mmbtu vs $12/mmbtu, and rupee depreciated 11% YoY in 1QFY27, severely pressuring input costs.

  • Subsidies suspended amid conflict May 26

    MGL halted all customer support schemes including downstream piping cost absorption and monthly bill subsidies with immediate effect, citing the West Asia conflict and Strait of Hormuz closure.

  • Stock down 25% in one year Jun 12

    Stock closed at ₹1,062.20, down 13% over 3.5 months, 24.67% over 1 year, and 25.19% over 2 years amid sustained margin headwinds.

  • Gross profit per SCM declining May 31

    Gross profit per SCM dropped 25.1% from ₹17.80 in Q4 FY25 to ₹13.34 in Q4 FY26, with Q4 operating margins slipping to 8.71% from 13.27% in Q3.

  • EV and regulatory competition risks May 31

    Electric vehicle adoption threatens CNG's cost advantage over time, and PNGRB open access discussions could introduce new competitors in MGL's service area.

Positives 6
  • Motilal Oswal buy, ₹1,390 target Jun 12

    Motilal Oswal maintained BUY with ₹1,390 target (31% upside) based on 14x Dec 2027 P/E, expecting ~9% volume CAGR over FY26-28 and noting valuations at ~10.8x FY28E P/E near mean -1 S.D.

  • CD Equisearch buy, ₹1,352 target Jun 04

    CD Equisearch issued buy at ₹1,352 target based on 15x FY27 earnings. Q4FY26 volumes grew 11.4% YoY to 420.5 million scm with CNG volumes up 14.1%.

  • Aggressive infra expansion in FY26 Jun 04

    MGL added 861 km pipeline (total ~8,320 km) and 52 CNG stations (total 518) in FY26 with ₹1,060 crore capex, planning another ₹1,000 crore for FY27.

  • CNG price hikes protect earnings May 31

    Three successive CNG hikes totaling ₹5/kg since April 2026, with management guiding INR 2-3/kg more. CNG still offers 45% savings over petrol and 12% over diesel, limiting demand elasticity.

  • D-PNG conversions accelerating Jun 12

    D-PNG conversion momentum up 50% vs pre-war levels. Maharashtra government mandated PNG adoption where available, with MGL targeting 4-5 lakh new PNG customers.

  • Demand resilient despite hikes May 31

    CNG volumes grew 7.12% YoY in Q4 FY26 to 3.349 mmscmd despite cumulative ₹5/kg price increase, with management guiding 6-7% sustained CNG volume growth.

Neutral 3
  • CNG price hike ₹2/kg Mumbai May 30

    MGL raised CNG prices by ₹2/kg in Mumbai Metropolitan Region, continuing upward revisions. Delhi saw four consecutive ₹2/kg hikes within two weeks.

  • JM Financial conference attendance Jun 09

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

  • SVP Marketing retires May 31

    Senior Vice President Marketing Rajesh Wagle retires on June 1, 2026 due to superannuation under Regulation 30.

TL;DR: MGL faces acute near-term margin pressure from the West Asia conflict driving crude to $102/bbl, LNG to $18/mmbtu, and an 11% rupee depreciation, compressing OPM from 21.6% to 17.6% in FY26 with further compression expected. However, volume growth remains resilient at 7-14% YoY, infrastructure expansion continues at pace, and multiple brokerages see 26-31% upside given valuations near historical lows at ~10.8x FY28E P/E. The key swing factor is whether cumulative ₹5/kg CNG price hikes plus further ₹2-3/kg increases can stabilize margins without denting demand growth — early signs suggest demand elasticity is low, positioning MGL for earnings recovery if geopolitical pressures ease.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,610
1,538
1,571
1,569
1,567
1,590
1,786
1,758
1,963
2,081
2,049
2,058
2,051
Expenses
1,221
1,017
1,092
1,120
1,173
1,171
1,373
1,443
1,568
1,581
1,711
1,706
1,791
Operating Profit
390
521
479
449
394
418
413
314
395
501
338
352
260
OPM %
24%
34%
30%
29%
25%
26%
23%
18%
20%
24%
16%
17%
13%
Other Income
34
39
44
48
45
40
47
46
42
32
29
29
29
Interest
2
3
2
3
4
3
3
3
4
4
5
6
5
Depreciation
64
62
66
68
78
72
84
79
95
96
104
103
106
PBT
357
496
454
426
357
384
373
278
338
432
258
272
178
Tax %
25%
26%
25%
26%
26%
26%
23%
19%
28%
26%
25%
26%
26%
Net Profit
269
368
338
317
265
285
287
225
242
320
193
202
132
EPS in Rs
27.21
37.3
34.27
32.11
26.83
28.81
29.03
22.82
24.53
32.35
19.58
20.45
13.36
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,095
2,078
2,034
2,233
2,791
2,972
2,153
3,560
6,299
6,245
6,924
8,240
Expenses
1,605
1,569
1,390
1,453
1,906
1,919
1,219
2,636
5,115
4,402
5,414
6,789
Operating Profit
490
509
644
780
885
1,053
934
924
1,184
1,843
1,510
1,451
OPM %
23%
24%
32%
35%
32%
35%
43%
26%
19%
30%
22%
18%
Other Income
41
47
53
58
78
99
81
86
112
175
184
119
Interest
1
2
1
0
0
7
7
8
9
12
13
21
Depreciation
80
83
95
111
126
162
174
196
231
274
306
409
PBT
449
472
601
727
837
984
834
806
1,056
1,733
1,374
1,141
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
1,045
847
EPS in Rs
33.69
34.8
39.83
48.38
55.32
80.33
62.72
60.43
79.98
131
106
85.73
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
5,791
6,335
Borrowings
16
5
3
1
0
67
74
103
115
139
164
219
Other Liabilities
743
637
782
914
1,042
1,109
1,295
1,534
1,783
1,944
2,150
2,312
Total Liabilities
2,166
2,370
2,624
3,010
3,441
4,128
4,601
5,234
6,032
7,226
8,204
8,965
Fixed Assets
1,064
1,129
1,305
1,532
1,763
2,049
2,169
2,614
3,026
3,543
4,104
5,373
CWIP
380
429
412
357
370
487
560
616
709
774
974
1,259
Investments
371
393
467
688
654
1,121
1,025
1,088
1,310
1,636
1,740
1,169
Other Assets
350
419
441
434
654
471
847
916
988
1,273
1,385
1,163
Total Assets
2,166
2,370
2,624
3,010
3,441
4,128
4,601
5,234
6,032
7,226
8,204
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
1,368
1,147
Investing
-261
-222
-263
-419
-439
-755
-444
-539
-649
-1,267
-1,001
-874
Financing
-176
-191
-284
-226
-235
-242
-349
-310
-285
-312
-336
-368
Net Cash Flow
-10
5
-15
8
12
-11
13
54
35
-15
32
-95
Free Cash Flow
229
204
278
383
322
559
466
256
257
793
300
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
-12
-6
Working Capital Days
-80
-59
-79
-86
-78
-97
-152
-106
-63
-72
-70
-11
ROCE %
33%
30%
34%
37%
37%
37%
27%
23%
27%
34%
23%
18%

Shareholding Pattern

As of Mar 2026
Promoters 32.50%
FIIs 24.14%
DIIs 21.01%
Public 10.43%
Government 10.00%
Others 1.92%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 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%
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%
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%
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%
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%
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%
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

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 Energy sector within the Gas 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 ₹11797.03 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 13.70. 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 ₹1,586.9. 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 1.00%. 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 24.86%. 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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