Mahanagar Gas Ltd (IN:MGL)
:MGL
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Mahanagar Gas Ltd
(MGL)
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Rating:69Neutral
Price Target:
₹1,053.00
▼(-8.70% Downside)
Action:DowngradedDate:03/05/26
The score is supported primarily by strong financial fundamentals, led by a healthy balance sheet and solid profitability, with a reasonable valuation and dividend yield adding support. These positives are tempered by weaker technical positioning (price below key moving averages) and the notable decline in free cash flow.
Positive Factors
Balance Sheet Strength
MGL's low debt-to-equity and robust equity base provide durable financial flexibility. This supports funding network capex, withstanding commodity cycles, and retaining access to credit markets—enabling steady infrastructure investment and preserving solvency over the medium term.
Negative Factors
Free Cash Flow Variability
A sharp decline and variability in free cash flow weakens the firm's ability to self-fund network expansion or absorb shocks without tapping external financing. Over 2-6 months this raises the risk that capex or payout policies could pressure liquidity or credit metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
MGL's low debt-to-equity and robust equity base provide durable financial flexibility. This supports funding network capex, withstanding commodity cycles, and retaining access to credit markets—enabling steady infrastructure investment and preserving solvency over the medium term.
Read all positive factors
Mahanagar Gas Ltd (MGL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹112.85B
Dividend Yield2.62%
Average Volume (3M)14.39K
Price to Earnings (P/E)13.9
Beta (1Y)1.42
Revenue Growth18.03%
EPS Growth-8.45%
CountryIN
Employees532
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)20.40
Shares Outstanding98,777,780
10 Day Avg. Volume12,519
30 Day Avg. Volume14,387
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)2.33
Price to Sales (P/S)1.89
P/FCF Ratio61.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,252.00Price Target Upside8.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)95.31
Revenue Forecast (FY)₹90.19B
Mahanagar Gas Ltd Business Overview & Revenue Model
Company Description
Mahanagar Gas Limited operates as a natural gas distribution company in India. The company provides domestic piped natural gas (PNG), commercial PNG, industrial PNG, and compressed natural gas (CNG), as well as manufactures gas geysers. It operate...
How the Company Makes Money
MGL primarily earns revenue by selling natural gas to end customers across distinct segments and by operating the infrastructure and retail network required to deliver it. Its key revenue streams include: (1) CNG sales: MGL purchases natural gas (...
Mahanagar Gas Ltd Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
81
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.09B | 72.28B | 62.67B | 62.77B | 35.36B | 21.36B |
| Gross Profit | 21.69B | 22.46B | 24.00B | 16.41B | 12.91B | 12.57B |
| EBITDA | 17.02B | 17.36B | 20.19B | 12.96B | 10.10B | 10.14B |
| Net Income | 9.79B | 10.41B | 12.85B | 7.90B | 5.97B | 6.20B |
Balance Sheet | ||||||
| Total Assets | 86.65B | 82.70B | 73.81B | 60.32B | 52.34B | 46.01B |
| Cash, Cash Equivalents and Short-Term Investments | 12.99B | 13.87B | 14.39B | 15.31B | 15.51B | 14.86B |
| Total Debt | 4.02B | 2.01B | 1.41B | 1.15B | 1.03B | 741.05M |
| Total Liabilities | 24.41B | 23.75B | 22.46B | 18.98B | 16.36B | 13.69B |
| Stockholders Equity | 62.09B | 58.80B | 51.30B | 41.34B | 35.97B | 32.32B |
Cash Flow | ||||||
| Free Cash Flow | 728.30M | 2.22B | 8.33B | 2.56B | 2.55B | 4.66B |
| Operating Cash Flow | 5.36B | 14.06B | 15.68B | 9.69B | 9.04B | 8.06B |
| Investing Cash Flow | -4.47B | -10.52B | -10.82B | -6.49B | -5.39B | -4.44B |
| Financing Cash Flow | -2.07B | -3.32B | -4.99B | -2.85B | -3.10B | -3.49B |
Mahanagar Gas Ltd Technical Analysis
Positive
1153.30
Price Trends
1065.52
Positive
1090.25
Positive
1204.71
Negative
Market Momentum
10.42
Negative
68.43
Neutral
95.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MGL, the sentiment is Positive. The current price of 1153.3 is above the 20-day moving average (MA) of 996.10, above the 50-day MA of 1065.52, and below the 200-day MA of 1204.71, indicating a neutral trend. The MACD of 10.42 indicates Negative momentum. The RSI at 68.43 is Neutral, neither overbought nor oversold. The STOCH value of 95.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MGL.
Mahanagar Gas Ltd Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹230.86B | 17.31 | ― | 0.77% | 9.48% | -1.90% | |
74 Outperform | ₹91.95B | 14.87 | ― | 0.82% | 115.57% | 161.77% | |
74 Outperform | ₹891.76B | 25.60 | ― | 1.48% | -0.76% | 28.02% | |
73 Outperform | ₹249.41B | 19.48 | ― | 3.56% | 11.14% | 5.30% | |
69 Neutral | ₹112.85B | 13.95 | ― | 2.62% | 18.03% | -8.45% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
55 Neutral | ₹32.23B | 152.35 | ― | ― | -14.99% | 1812.49% |
* Utilities Sector Average
IN:MGL
Mahanagar Gas Ltd
1,134.15
-161.02
-12.43%
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-177.74
-69.24%
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14.44%
Mahanagar Gas Ltd Corporate Events
Mahanagar Gas to Buy 26% Stake in Solar Firm for CNG Station Power Needs
Mar 9, 2026
Mahanagar Gas Ltd has agreed to acquire a 26% equity stake in FPEL Reliant Energy Private Limited for up to Rs 389 lakh through a cash investment. FPEL Reliant, which operates in solar and other renewable energy generation, will become an associat...
Mahanagar Gas announces change of chairman as GAIL reshapes board nominations
Feb 28, 2026
Mahanagar Gas Ltd has announced a change in its board leadership, with Sandeep Kumar Gupta set to cease as Director and Chairman of the company effective March 1, 2026, following the withdrawal of his nomination by major shareholder GAIL (India) L...
Mahanagar Gas Announces Chairman Change Under GAIL Nomination
Feb 28, 2026
Mahanagar Gas Limited has announced that Shri Sandeep Kumar Gupta will cease to be Director and Chairman of the company, along with his roles on various board committees, effective March 1, 2026, following the withdrawal of his nomination by promo...
Mahanagar Gas to See Chairman Change as GAIL Switches Nominee
Feb 28, 2026
Mahanagar Gas Ltd has announced that Sandeep Kumar Gupta will cease to serve as director and chairman of the company from March 1, 2026, following the withdrawal of his nomination by promoter GAIL (India) Ltd. Gupta will also step down from all bo...
Mahanagar Gas announces chairman transition following GAIL nomination change
Feb 28, 2026
Mahanagar Gas Ltd, a leading city gas distributor in Mumbai supplying CNG and PNG across segments, operates with GAIL (India) Limited as a significant nominating shareholder on its board. The company plays an important role in urban gas infrastruc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.