MGL - Swing Trade Analysis with AI Signals
Back to ListHere’s the structured swing trade analysis for Mahanagar Gas Ltd (MGL) based on the provided parameters
Swing Trade Rating: 3.6
| Stock Code | MGL | Market Cap | 11,963 Cr. | Current Price | 1,211 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 14.1 | Book Value | 651 ₹ | Dividend Yield | 2.48 % | ROCE | 18.3 % |
| ROE | 13.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,099 ₹ | DMA 200 | 1,154 ₹ |
| Chg in FII Hold | -0.76 % | Chg in DII Hold | 0.18 % | PAT Qtr | 132 Cr. | PAT Prev Qtr | 202 Cr. |
| RSI | 69.6 | MACD | 23.1 | Volume | 2,12,461 | Avg Vol 1Wk | 3,83,766 |
| Low price | 900 ₹ | High price | 1,587 ₹ | PEG Ratio | 6.04 | Debt to equity | 0.03 |
| 52w Index | 45.2 % | Qtr Profit Var | -45.6 % | EPS | 85.7 ₹ | Industry PE | 15.4 |
📊 MGL is trading at ₹1,211, above both 50 DMA (₹1,099) and 200 DMA (₹1,154), showing short-term strength. RSI at 69.6 indicates near overbought conditions, while MACD (23.1) confirms bullish bias. Volumes (2.1L) are below weekly averages (3.8L), suggesting reduced participation. Valuations are fair (P/E 14.1 vs industry 15.4), supported by strong fundamentals like ROCE (18.3%) and ROE (13.7%). However, quarterly PAT dropped sharply (₹202 Cr → ₹132 Cr), raising caution. Debt-to-equity remains very low at 0.03, and dividend yield at 2.48% adds investor appeal.
💡 Optimal Entry: ₹1,150–₹1,170 (near 200 DMA support zone)
🚪 Exit if Holding: Profit-taking zone around ₹1,280–₹1,300; Stop-loss below ₹1,140
✅ Positive
- Trading above both 50 DMA and 200 DMA
- Strong ROCE (18.3%) and ROE (13.7%)
- Low debt-to-equity ratio (0.03)
- Dividend yield at 2.48% supports investor sentiment
⚠️ Limitation
- Quarterly PAT decline (₹202 Cr → ₹132 Cr)
- Volumes below weekly average
- RSI near overbought levels (69.6)
- PEG ratio at 6.04 suggests expensive growth valuation
📉 Company Negative News
- Sharp decline in quarterly profitability (-45.6%)
- FII holdings decreased (-0.76%)
📈 Company Positive News
- DII holdings increased (+0.18%)
- EPS of ₹85.7 supports earnings visibility
🏭 Industry
- Energy distribution sector P/E at 15.4, MGL trades at fair valuation (P/E 14.1)
- Sector outlook resilient with long-term demand drivers
🔎 Conclusion
MGL is a cautious candidate for swing trading. While fundamentals remain strong with low debt and fair valuation, declining profitability and near overbought RSI limit upside. Entry near ₹1,150–₹1,170 offers controlled risk, while exits should be considered around ₹1,280–₹1,300. Suitable for short-term trades with strict monitoring of earnings and momentum indicators.
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