MGL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | MGL | Market Cap | 9,891 Cr. | Current Price | 1,001 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 10.2 | Book Value | 629 ₹ | Dividend Yield | 3.00 % | ROCE | 22.9 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,104 ₹ | DMA 200 | 1,212 ₹ |
| Chg in FII Hold | 1.30 % | Chg in DII Hold | -2.06 % | PAT Qtr | 202 Cr. | PAT Prev Qtr | 193 Cr. |
| RSI | 31.6 | MACD | -30.1 | Volume | 10,51,072 | Avg Vol 1Wk | 7,83,360 |
| Low price | 988 ₹ | High price | 1,587 ₹ | PEG Ratio | 0.57 | Debt to equity | 0.03 |
| 52w Index | 2.17 % | Qtr Profit Var | -10.4 % | EPS | 97.9 ₹ | Industry PE | 14.4 |
📊 Chart & Trend: MGL trades at ₹1,001, below both its 50 DMA (₹1,104) and 200 DMA (₹1,212). This indicates short-term and medium-term weakness, with the stock struggling to regain momentum.
📉 Momentum Indicators: RSI at 31.6 shows the stock is oversold, suggesting potential support and a possible rebound. MACD at -30.1 confirms bearish momentum. Bollinger Bands suggest price is near the lower band, with support around ₹990–₹1,000.
📈 Volume Trends: Current volume (10.5 lakh) is higher than the 1-week average (7.8 lakh), indicating increased activity, likely driven by selling pressure.
🔑 Entry Zone: ₹990–₹1,010 (near support and oversold RSI levels).
🚪 Exit Zone: ₹1,100–₹1,120 (near resistance and 50 DMA).
📌 Trend Status: The stock is reversing downward with strong bearish signals, though oversold RSI suggests a possible short-term bounce.
Positive
- EPS at ₹97.9 indicates strong earnings power.
- ROCE (22.9%) and ROE (17.7%) show solid efficiency.
- PEG ratio at 0.57 suggests reasonable valuation relative to growth.
- Dividend yield at 3.00% provides income stability.
- FII holdings increased (+1.30%), showing foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- 52-week index at only 2.17% shows severe underperformance.
- Quarterly profit variation (-10.4%) indicates declining profitability momentum.
Company Negative News
- DII holdings decreased (-2.06%), showing reduced domestic institutional support.
- Stock continues to trade below key moving averages.
Company Positive News
- Sequential PAT growth (₹193 Cr → ₹202 Cr) despite sector challenges.
- FII stake increased, supporting long-term confidence.
Industry
- Gas distribution sector PE at 14.4, slightly higher than MGL’s P/E of 10.2, suggesting relative undervaluation.
- Sector rotation favors defensive utilities, but valuations remain cautious.
Conclusion
⚖️ MGL is reversing downward with strong bearish signals, trading below key averages. Entry near ₹990–₹1,010 offers margin of safety for short-term bounce trades, while exits around ₹1,100–₹1,120 provide profit-taking opportunities. Despite weak technicals and reduced DII support, strong efficiency ratios, dividend yield, and undervaluation relative to peers support long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with IGL, Gujarat Gas, and Adani Total Gas to highlight MGL’s relative strength in the city gas distribution sector?