MGL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | MGL | Market Cap | 11,218 Cr. | Current Price | 1,136 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 11.6 | Book Value | 629 ₹ | Dividend Yield | 2.64 % | ROCE | 22.9 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,080 ₹ | DMA 200 | 1,174 ₹ |
| Chg in FII Hold | -0.76 % | Chg in DII Hold | 0.18 % | PAT Qtr | 202 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 63.2 | MACD | 31.0 | Volume | 2,07,152 | Avg Vol 1Wk | 1,79,916 |
| Low price | 900 ₹ | High price | 1,587 ₹ | PEG Ratio | 0.65 | Debt to equity | 0.03 |
| 52w Index | 34.3 % | Qtr Profit Var | -10.4 % | EPS | 97.9 ₹ | Industry PE | 21.5 |
📊 Mahanagar Gas Ltd (MGL) demonstrates strong fundamentals with a market cap of ₹11,218 Cr. and current price of ₹1,136, trading near its 50 DMA (₹1,080) but slightly below its 200 DMA (₹1,174). Efficiency metrics are robust — ROE at 17.7% and ROCE at 22.9% — supported by a healthy EPS of ₹97.9. Valuation remains attractive with a P/E of 11.6 compared to the industry average of 21.5, and PEG ratio at 0.65 suggests fair growth-adjusted valuation. Debt-to-equity is very low at 0.03, reflecting strong financial stability. Dividend yield at 2.64% adds investor returns. However, quarterly profit variation (-10.4%) indicates earnings volatility, and FIIs reduced holdings (-0.76%).
💡 Entry Zone: ₹1,100–₹1,120 (near support levels)
📈 Long-Term Holding: Attractive for long-term investors given strong fundamentals, low debt, and undervaluation. Accumulation on dips below ₹1,120 offers excellent value.
✅ Positive
- Strong ROE (17.7%) and ROCE (22.9%) highlight efficiency
- Attractive valuation (P/E 11.6 vs industry 21.5)
- PEG ratio (0.65) indicates fair growth-adjusted valuation
- Low debt-to-equity ratio (0.03) reflects financial stability
- Dividend yield of 2.64% adds investor returns
⚠️ Limitation
- Quarterly profit variation (-10.4%) shows earnings volatility
- FIIs reduced holdings (-0.76%), showing weaker foreign confidence
- Stock trading below 200 DMA (₹1,174), indicating technical resistance
📉 Company Negative News
- Sequential profit decline in recent quarter
- Reduced foreign institutional participation
📈 Company Positive News
- PAT improved sequentially (₹193 Cr → ₹202 Cr)
- DII holdings increased (+0.18%)
- Strong dividend payout policy supports investor confidence
🏭 Industry
- City gas distribution sector trades at higher P/E (21.5), making MGL undervalued
- Sector outlook remains positive with rising demand for clean energy solutions
🔎 Conclusion
MGL offers a compelling investment case with strong profitability, low debt, and attractive valuation. Entry near ₹1,100–₹1,120 provides a favorable risk-reward setup. Long-term investors can accumulate confidently, as fundamentals and sector positioning support sustained growth and value creation.