MGL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.1
| Stock Code | MGL | Market Cap | 11,349 Cr. | Current Price | 1,149 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 11.4 | Book Value | 629 ₹ | Dividend Yield | 2.60 % | ROCE | 22.9 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,209 ₹ | DMA 200 | 1,306 ₹ |
| Chg in FII Hold | -1.89 % | Chg in DII Hold | 0.37 % | PAT Qtr | 193 Cr. | PAT Prev Qtr | 320 Cr. |
| RSI | 31.1 | MACD | -33.2 | Volume | 1,09,432 | Avg Vol 1Wk | 3,99,430 |
| Low price | 1,092 ₹ | High price | 1,587 ₹ | PEG Ratio | 0.64 | Debt to equity | 0.03 |
| 52w Index | 11.4 % | Qtr Profit Var | -32.6 % | EPS | 100 ₹ | Industry PE | 20.4 |
- 📈 Revenue Growth: Quarterly PAT declined from ₹320 Cr to ₹193 Cr (-32.6%)
- 💰 Profit Margins: Strong, ROE at 17.7% and ROCE at 22.9%
- ⚖️ Debt Ratio: Debt-to-equity at 0.03, negligible leverage
- 💵 Cash Flows: Stable, supported by EPS of ₹100
- 📊 ROE/ROCE: Efficient capital use, above industry averages
- 📉 Valuation: P/E 11.4 vs Industry PE 20.4, undervalued
- 📚 Book Value: ₹629, P/B ~1.83
- 📈 PEG Ratio: 0.64, attractive growth at reasonable valuation
- 🏢 Business Model: City gas distribution with strong presence in Mumbai region
- 🛡️ Competitive Advantage: Monopoly-like position in key markets, regulated pricing, and steady demand
Positive
- ✅ Low debt-to-equity ratio (0.03)
- ✅ Strong ROE (17.7%) and ROCE (22.9%)
- ✅ Attractive dividend yield of 2.60%
- ✅ Undervalued compared to industry PE
Limitation
- ⚠️ Quarterly PAT dropped significantly (-32.6%)
- ⚠️ FII holdings reduced by 1.89%
- ⚠️ RSI at 31.1 indicates oversold momentum
- ⚠️ Dependence on regulatory environment and gas supply contracts
Company Negative News
- 📉 Profit decline in latest quarter
- 📉 Reduction in foreign institutional investor holdings
Company Positive News
- 🌍 Expansion of city gas distribution network
- 💡 Strong dividend payout policy
- 🏭 Continued demand growth in CNG and PNG segments
Industry
- 💹 Industry PE at 20.4, MGL trades at a discount
- 📈 Rising demand for clean energy and city gas distribution
Conclusion
MGL shows strong fundamentals with high ROE/ROCE, low debt, and undervaluation relative to peers. Despite recent profit decline, the company’s monopoly-like position in Mumbai and steady demand for clean energy support long-term growth. Entry zone is attractive around ₹1,100–1,180 (near 52-week low and DMA 50). Long-term holding is favorable given dividend yield, strong fundamentals, and industry tailwinds.
Would you like me to extend this into a peer benchmarking overlay comparing MGL with Indraprastha Gas and Gujarat Gas, or should we run a sector rotation scan to identify compounding opportunities in the broader clean energy space?
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