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Mahanagar Gas Ltd
(MGL)
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Rating:71Outperform
Price Target:
₹1,254.00
▲(16.55% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by strong financial quality (especially a conservative, low-leverage balance sheet) but is held back by recent margin pressure and weaker free cash flow. Technicals are modestly supportive with price above key moving averages, while valuation looks reasonable with a mid-range P/E and a ~2.7% dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and steady equity/assets growth provide durable financial flexibility. That conservative capital structure supports sustained investment in pipeline and CNG infrastructure, helps absorb commodity or regulatory shocks, and underpins long-term credit and funding optionality.
Negative Factors
Margin compression
Meaningful margin decline reduces profitability and long-term returns on invested capital. If procurement, transportation, or operating costs persistently outpace tariff adjustments or efficiency gains, margin pressure can structurally erode earnings power and weaken reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steady equity/assets growth provide durable financial flexibility. That conservative capital structure supports sustained investment in pipeline and CNG infrastructure, helps absorb commodity or regulatory shocks, and underpins long-term credit and funding optionality.
Read all positive factors
Mahanagar Gas Ltd (MGL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹112.61B
Dividend Yield2.63%
Average Volume (3M)14.39K
Price to Earnings (P/E)15.7
Beta (1Y)1.36
Revenue Growth11.12%
EPS Growth-33.11%
CountryIN
Employees532
SectorGeneral
Sector StrengthN/A
IndustryRegulated Gas
Share Statistics
EPS (TTM)72.42
Shares Outstanding98,777,780
10 Day Avg. Volume12,519
30 Day Avg. Volume14,387
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.43
Price to Sales (P/S)1.11
P/FCF Ratio89.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,168.00Price Target Upside8.56% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)77.6
Revenue Forecast (FY)₹95.48B
Mahanagar Gas Ltd Business Overview & Revenue Model
Company Description
Established in 1995 and based in Mumbai, India, Mahanagar Gas Limited functions as a key player in the Indian natural gas distribution sector. The company delivers a variety of natural gas solutions, including piped natural gas (PNG) for residenti...
How the Company Makes Money
MGL primarily makes money by procuring natural gas and selling it to end users through two main channels: (1) CNG sales to vehicles via its CNG filling stations, and (2) PNG sales delivered through its pipeline network to residential, commercial, ...
Mahanagar Gas Ltd Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
88
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.35B | 82.46B | 72.28B | 62.67B | 62.77B | 35.36B |
| Gross Profit | 21.83B | 20.32B | 22.46B | 24.00B | 16.41B | 12.91B |
| EBITDA | 14.08B | 15.65B | 17.36B | 20.19B | 12.96B | 10.10B |
| Net Income | 7.15B | 8.41B | 10.41B | 12.85B | 7.90B | 5.97B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 89.81B | 82.70B | 73.81B | 60.32B | 52.34B |
| Cash, Cash Equivalents and Short-Term Investments | 11.50B | 11.50B | 13.87B | 14.39B | 15.31B | 15.51B |
| Total Debt | 0.00 | 2.23B | 2.01B | 1.41B | 1.15B | 1.03B |
| Total Liabilities | -64.42B | 25.40B | 23.75B | 22.46B | 18.98B | 16.36B |
| Stockholders Equity | 64.42B | 64.28B | 58.80B | 51.30B | 41.34B | 35.97B |
Cash Flow | ||||||
| Free Cash Flow | 728.30M | 1.03B | 2.22B | 8.33B | 2.56B | 2.55B |
| Operating Cash Flow | 5.36B | 11.78B | 14.06B | 15.68B | 9.69B | 9.04B |
| Investing Cash Flow | -4.47B | -9.04B | -10.52B | -10.82B | -6.49B | -5.39B |
| Financing Cash Flow | -2.07B | -3.69B | -3.32B | -4.99B | -2.85B | -3.10B |
Mahanagar Gas Ltd Technical Analysis
Positive
1075.90
Price Trends
1126.14
Positive
1095.99
Positive
1115.65
Positive
Market Momentum
4.08
Negative
56.80
Neutral
34.52
Neutral
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 1075.9 is below the 20-day moving average (MA) of 1107.74, below the 50-day MA of 1126.14, and below the 200-day MA of 1115.65, indicating a bullish trend. The MACD of 4.08 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹265.61B | 19.88 | ― | 1.47% | 43.18% | 34.41% | |
71 Outperform | ₹112.61B | 15.72 | ― | 2.79% | 11.12% | -33.11% | |
71 Outperform | ₹151.74B | 13.71 | ― | 1.86% | ― | ― | |
70 Outperform | ₹212.45B | 15.61 | ― | 3.18% | 9.92% | -18.31% | |
64 Neutral | ₹1.14T | 11.64 | ― | 3.53% | 3.52% | -15.10% | |
63 Neutral | ₹718.73B | 113.75 | ― | 0.04% | 19.81% | -2.41% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:MGL
Mahanagar Gas Ltd
1,128.40
-197.42
-14.89%
IN:ATGL
Adani Total Gas Ltd.
646.85
23.22
3.72%
IN:GAIL
GAIL (India) Limited
172.55
4.10
2.44%
IN:GSPL
Gujarat State Petronet Limited
268.95
-30.82
-10.28%
IN:GUJGASLTD
Gujarat Gas Ltd.
276.25
-83.97
-23.31%
IN:IGL
Indraprastha Gas Limited
151.15
-48.53
-24.30%
Mahanagar Gas Ltd Corporate Events
Mahanagar Gas Sets Record Date for Rs 18 Final Dividend for FY 2025-26
Aug 3, 2026
Mahanagar Gas Limited has announced that it will pay a final dividend of Rs 18 per equity share for the 2025-26 financial year, representing 180 percent on a face value of Rs 10, subject to shareholder approval at its annual general meeting schedu...
Mahanagar Gas targets offline shareholders with digital AGM, dividend update
Aug 3, 2026
Mahanagar Gas Limited has notified stock exchanges that it is sending letters to shareholders whose email addresses are not registered, providing them with a web link, QR code and navigation path to access the company’s Integrated Annual Rep...
Mahanagar Gas Sets August 25, 2026, for Digital AGM and Final Dividend Record Date
Aug 3, 2026
Mahanagar Gas Ltd has scheduled its 31st Annual General Meeting for August 25, 2026, to be conducted via video conferencing or other audio-visual means, and has circulated its integrated annual report for FY 2025-26 to shareholders through electro...
Mahanagar Gas files FY26 Business Responsibility and Sustainability Report with external assurance
Aug 3, 2026
Mahanagar Gas Limited has submitted its Business Responsibility and Sustainability Report for the financial year 2025-26, prepared in line with SEBI’s mandatory BRSR framework for the top 1,000 listed entities by market capitalisation. The r...
Mahanagar Gas Files SEBI Demat Compliance Certificate for June Quarter
Jul 8, 2026
Mahanagar Gas Limited has submitted to BSE and NSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026. The filing underscores the company’s ongoin...
Mahanagar Gas announces retirement of senior marketing executive
May 31, 2026
Mahanagar Gas Ltd has announced a change in its senior management, with Senior Vice President of Marketing Rajesh Wagle set to retire from the company effective June 1, 2026, upon reaching the age of superannuation. His retirement means he will al...
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.