MGL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Here's a detailed breakdown of MGL’s financials, valuation, and investment outlook

📊 Core Financials

ROE (18.9%) & ROCE (24.3%): Very strong returns — reflects solid capital deployment and operating efficiency.

Quarterly PAT Growth: Up from ₹247 Cr. to ₹318 Cr. — indicates positive momentum with a 10% quarterly profit variation.

Debt-to-Equity: Just 0.03 — almost negligible, showcases excellent financial discipline.

EPS at ₹108: High for its price level, reinforcing earnings quality.

Dividend Yield: 2.16% — respectable, providing stable income along with capital appreciation potential.

📈 Valuation Metrics

Metric Value Insight

Stock P/E 12.8 Significantly below industry P/E (18.5) — undervaluation signal

P/B Ratio ~2.33 Reasonable given strong fundamentals

PEG Ratio Not provided But low P/E and stable growth hint at value pricing

Intrinsic Value Likely above current price Supported by profitability and low leverage

🔧 Business Model & Competitive Position

MGL (Mahanagar Gas Ltd) operates in city gas distribution — a regulated but fast-growing segment.

Strong demand due to rising urban energy needs and cleaner fuel adoption.

Monopoly-like position in key metro regions ensures pricing power and demand stability.

Minimal debt and steady margin profile highlight a conservative yet profitable operating model.

📉 Technical Overview

RSI: 37.9 — Approaching oversold zone, could indicate reversal potential.

MACD: -8.05 — Bearish signal, suggesting caution in short term.

Price below DMA50 & DMA200 — hints at consolidation; close to strong support.

🛒 Entry Zone & Holding Outlook

Suggested Entry Zone: ₹1,340–₹1,380 — attractive range based on support and RSI levels.

Long-Term Holding: Recommended. MGL combines low volatility, strong dividends, and dependable earnings. Ideal for conservative portfolios seeking steady growth and resilience to market cycles.

I can also chart its historical valuation or compare it with peers like IGL and Gujarat Gas to paint a broader picture. Want to explore that next?

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