Mahanagar Gas Ltd (MGL) AI Stock Analysis

• Market Cap: ₹103.71B
• Dividend Yield: 2.62%
• Average Volume (3M): 14.39K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.41
• Revenue Growth: 19.78%
• EPS Growth: -14.38%
• Country: IN
• Employees: 532
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 19.60
• Shares Outstanding: 98,777,780
• 10 Day Avg. Volume: 12,519
• 30 Day Avg. Volume: 14,387
• PEG Ratio: -0.69
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 61.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,305.00
• Price Target Upside: 14.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,150.00 ▲(0.78% Upside)

Mahanagar Gas Ltd shows strong financial performance with robust revenue growth and a solid balance sheet, which are significant strengths. However, technical indicators suggest bearish momentum, which is a notable risk. The stock's valuation is attractive, with a low P/E ratio and a good dividend yield, supporting its investment appeal.

Positive Factors

Low leverage / strong balance sheet

Low leverage and a robust equity ratio provide durable financial flexibility for long-term infrastructure investment and regulatory cycles. This balance-sheet strength reduces refinancing risk, supports sustained capex for network expansion, and underpins consistent service delivery over the next several years.

Consistent revenue growth

Sustained top-line growth reflects expanding PNG/CNG customer adoption and geographic penetration, driven by structural demand for cleaner fuels. Persistent revenue momentum supports long-term scale benefits, stable cash flows, and the ability to fund network rollout and customer additions over 2-6 months and beyond.

Strong operational cash generation

Robust operating cash conversion signals that core distribution operations reliably convert earnings to cash, enabling sustainable funding of maintenance, incremental capex and customer programs without overreliance on external financing. This bolsters long-term operational resilience.

Negative Factors

Free cash flow volatility

A material drop and variability in free cash flow can constrain the company’s ability to consistently finance expansion, pay dividends, or absorb unforeseen costs. Over a multi-quarter horizon this may force tighter capex prioritization or reliance on external funding for network investments.

Margin pressure / slight EBIT decline

Eroding net margins and a dip in EBIT suggest rising costs or margin compression risks. For a regulated distributor, sustained margin pressure can reduce reinvestment capacity and shareholder returns, and may indicate vulnerability to input cost increases or regulatory pricing limits.

Negative EPS growth

A meaningful decline in EPS growth reflects near-term earnings stress that can persist if underlying factors (costs, regulated pricing, or higher financing) are unresolved. Over several quarters this weakens retained earnings accumulation and may limit strategic investments or dividend stability.

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 operates 290 CNG filing stations that provides gas to approximately 8.5 lakh vehicles with 1,738 dispensing points; 550 km of steel pipeline and approximately 5,670 km of MDPE pipeline; and 4,339 commercial and industrial customers. The company's PNG is used for various applications, such as cooking and water heating, as well as in hospitals, nursing homes, hotels, flight kitchens, restaurants, places of worship, etc. Mahanagar Gas Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

Mahanagar Gas Ltd generates revenue through multiple streams primarily focused on the sale of piped natural gas (PNG) and compressed natural gas (CNG). The key revenue model includes charging customers for the quantity of gas consumed, with pricing regulated by the government to ensure fairness in the market. MGL also earns money from the installation and maintenance of gas connections for residential and commercial consumers. Additionally, partnerships with various stakeholders, including gas suppliers and local governments, enhance its operational efficiency and market reach. The growing demand for cleaner energy solutions, alongside expansion into new geographic areas, significantly contributes to MGL's revenue growth.

Mahanagar Gas Ltd Financial Statement Overview

Summary

Mahanagar Gas Ltd demonstrates strong financial performance with steady revenue growth and solid profitability. The company maintains a sound balance sheet with low leverage and a high equity ratio, indicating financial stability. However, cash flow variability, particularly in free cash flow, suggests potential cash management challenges.

Income Statement

Mahanagar Gas Ltd has shown solid revenue growth from 2022 to 2025, with a notable increase in total revenue from 2024 to 2025. The gross profit margin remained strong, although net profit margins have slightly declined over the years. The EBIT and EBITDA margins indicate efficient operational performance, though there's a slight decline in EBIT in 2025. Overall, the income statement reflects a stable and growing revenue base with strong profitability.

Balance Sheet

The company's balance sheet exhibits strong financial health, with a low debt-to-equity ratio indicating low leverage. The equity ratio is robust, showcasing a solid foundation of stockholders' equity relative to total assets. Return on equity remains strong, albeit slightly declining in the most recent year. Overall, the balance sheet demonstrates financial stability and efficient capital management.

Cash Flow

Mahanagar Gas Ltd has exhibited fluctuating free cash flow growth, with a significant decrease in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the drop in free cash flow signals potential challenges in maintaining cash reserves. Overall, while operational cash flow remains strong, the variability in free cash flow suggests a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	76.81B	72.64B	62.90B	62.99B	35.60B	21.53B
Gross Profit	25.66B	25.84B	26.45B	12.59B	15.15B	9.40B
EBITDA	17.50B	15.70B	20.19B	12.96B	10.10B	10.14B
Net Income	10.70B	10.41B	12.76B	7.90B	5.97B	6.20B
Balance Sheet
Total Assets	0.00	82.70B	73.81B	60.32B	52.34B	46.01B
Cash, Cash Equivalents and Short-Term Investments	13.87B	13.87B	14.39B	15.31B	15.51B	14.86B
Total Debt	0.00	2.01B	1.41B	1.15B	1.03B	741.05M
Total Liabilities	-58.95B	23.75B	22.46B	18.98B	16.36B	13.69B
Stockholders Equity	58.95B	58.80B	51.30B	41.34B	35.97B	32.32B
Cash Flow
Free Cash Flow	0.00	2.22B	8.33B	2.56B	2.55B	4.66B
Operating Cash Flow	0.00	14.06B	15.68B	9.69B	9.04B	8.06B
Investing Cash Flow	0.00	-10.52B	-10.82B	-6.49B	-5.39B	-4.44B
Financing Cash Flow	0.00	-3.32B	-4.99B	-2.85B	-3.10B	-3.49B

Mahanagar Gas Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1141.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MGL, the sentiment is Negative. The current price of 1141.1 is above the 20-day moving average (MA) of 1101.41, below the 50-day MA of 1151.26, and below the 200-day MA of 1292.89, indicating a bearish trend. The MACD of -28.76 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MGL.

Mahanagar Gas Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹677.60B	22.54	―	1.48%	-1.26%	27.83%
IGL	75 Outperform	₹253.89B	15.90	―	0.77%	8.88%	-13.51%
CESC	73 Outperform	₹208.38B	14.37	―	3.56%	10.58%	2.69%
MGL	69 Neutral	₹103.71B	10.61	―	2.62%	19.78%	-14.38%
GENUSPOWER	68 Neutral	₹83.96B	16.76	―	0.82%	129.98%	215.49%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RELINFRA	57 Neutral	₹60.74B	1.96	―	―	-10.55%	-5.08%

Mahanagar Gas Ltd Corporate Events

Mahanagar Gas Ltd Restores Normalcy After Pipeline Disruption

Mahanagar Gas Ltd addressed a recent incident involving a damaged gas pipeline operated by GAIL (India) Limited, which disrupted the gas supply to Mumbai and its suburbs. Despite the interruption, MGL managed to maintain full supply to domestic and small commercial consumers by utilizing other City Gate Stations (CGS) and ensured that 60% of CNG stations remained operational. The company confirmed that operations have returned to normal, and the disruption did not meet the materiality thresholds for mandatory disclosure under SEBI regulations.