MGL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | MGL | Market Cap | 10,395 Cr. | Current Price | 1,051 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 10.5 | Book Value | 629 ₹ | Dividend Yield | 2.86 % | ROCE | 22.9 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,118 ₹ | DMA 200 | 1,248 ₹ |
| Chg in FII Hold | 1.30 % | Chg in DII Hold | -2.06 % | PAT Qtr | 193 Cr. | PAT Prev Qtr | 320 Cr. |
| RSI | 41.6 | MACD | -19.8 | Volume | 1,76,280 | Avg Vol 1Wk | 1,66,749 |
| Low price | 1,019 ₹ | High price | 1,587 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.03 |
| 52w Index | 5.70 % | Qtr Profit Var | -32.6 % | EPS | 100 ₹ | Industry PE | 19.5 |
📊 Mahanagar Gas Ltd (MGL) shows a cautious outlook for swing trading. The stock trades at ₹1,051, below both its 50 DMA (₹1,118) and 200 DMA (₹1,248), reflecting short-term weakness. RSI at 41.6 suggests nearing oversold territory, while MACD at -19.8 confirms bearish momentum. Valuation is attractive with a P/E of 10.5 compared to industry average of 19.5, supported by strong ROE (17.7%) and ROCE (22.9%). Dividend yield of 2.86% adds investor appeal. However, sequential PAT decline and reduced DII holdings weigh on sentiment.
✅ Optimal Entry Price: Around ₹1,030–1,045 (near support zone, slightly below current price).
🚪 Exit Strategy (if already holding): Consider exit near ₹1,150–1,180 (resistance zone close to 50 DMA). If price falls below ₹1,020, apply stop-loss to protect capital.
Positive
- 📈 Attractive valuation (P/E 10.5 vs industry 19.5).
- 💹 Strong ROE (17.7%) and ROCE (22.9%).
- 💰 Dividend yield of 2.86% adds stability.
- ⚡ Very low debt-to-equity ratio (0.03).
- 🏦 FII holdings increased (+1.30%).
Limitation
- ⚠️ Trading below both 50 DMA and 200 DMA.
- 📉 Negative MACD (-19.8) indicates bearish momentum.
- 📉 RSI at 41.6 shows weakness despite nearing oversold zone.
- 📉 Sequential PAT decline (₹193 Cr. vs ₹320 Cr.).
Company Negative News
- 📉 PAT dropped sharply QoQ (-32.6%).
- 📉 DII holdings decreased (-2.06%).
Company Positive News
- 📈 EPS of ₹100 supports valuation strength.
- 🏦 FII accumulation signals global investor confidence.
Industry
- 🏭 Gas distribution sector average PE is 19.5, MGL trades at a discount (10.5).
- 📊 Sector demand remains stable, supported by urban energy needs.
Conclusion
⚖️ MGL is a moderately suitable candidate for swing trading. Entry near ₹1,030–1,045 offers favorable risk-reward, while exits should be targeted near ₹1,150–1,180. Strong fundamentals, dividend yield, and low debt provide support, but weak technicals and profit decline limit short-term upside. Traders should remain cautious and apply strict stop-loss discipline below ₹1,020.