MGL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.9
| Stock Code | MGL | Market Cap | 10,344 Cr. | Current Price | 1,047 ₹ | High / Low | 1,587 ₹ |
| Stock P/E | 10.4 | Book Value | 629 ₹ | Dividend Yield | 2.87 % | ROCE | 22.9 % |
| ROE | 17.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,123 ₹ | DMA 200 | 1,252 ₹ |
| Chg in FII Hold | 1.30 % | Chg in DII Hold | -2.06 % | PAT Qtr | 193 Cr. | PAT Prev Qtr | 320 Cr. |
| RSI | 39.6 | MACD | -20.8 | Volume | 57,919 | Avg Vol 1Wk | 2,47,156 |
| Low price | 1,019 ₹ | High price | 1,587 ₹ | PEG Ratio | 0.58 | Debt to equity | 0.03 |
| 52w Index | 4.98 % | Qtr Profit Var | -32.6 % | EPS | 100 ₹ | Industry PE | 19.8 |
📊 Chart Patterns & Trend: MGL is trading at 1,047 ₹, below both its 50 DMA (1,123 ₹) and 200 DMA (1,252 ₹). This indicates a bearish consolidation with downward bias. The stock is near its 52-week low (1,019 ₹), reflecting weak sentiment and selling pressure.
📈 RSI: At 39.6, RSI is approaching oversold territory, suggesting limited downside but weak momentum.
📉 MACD: Negative at -20.8, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (57,919) is significantly lower than average weekly volume (2,47,156), showing weak participation and lack of conviction in recent moves.
🎯 Entry Zone: 1,020–1,050 ₹ (near support and oversold RSI).
🎯 Exit Zone: 1,120–1,150 ₹ (near 50 DMA resistance).
Positive
- Market cap of 10,344 Cr. reflects strong presence in city gas distribution sector.
- Low P/E of 10.4 compared to industry PE of 19.8, making valuation attractive.
- ROCE (22.9%) and ROE (17.7%) highlight strong capital efficiency.
- Dividend yield of 2.87% provides healthy income return.
- Debt-to-equity ratio at 0.03 shows near debt-free balance sheet.
- FII holdings increased by 1.30%, showing strong foreign investor confidence.
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak momentum.
- Sequential decline in PAT (193 Cr. vs 320 Cr.).
- DII holdings decreased (-2.06%), showing reduced domestic institutional confidence.
- Quarterly profit variance of -32.6% highlights operational weakness.
- Weak trading volumes reduce conviction in price action.
Company Negative News
- Sharp sequential decline in quarterly PAT.
- DII stake reduction highlights declining domestic investor confidence.
- Stock trading near 52-week low, reflecting weak sentiment.
Company Positive News
- EPS at 100 ₹ reflects strong earnings power.
- FII stake increase shows strong global investor interest.
- Dividend yield of 2.87% provides attractive returns for income-focused investors.
Industry
- City gas distribution sector trading at industry PE of 19.8, making MGL undervalued at P/E of 10.4.
- Sector outlook remains positive with rising demand for clean energy solutions.
Conclusion
⚖️ MGL is in a bearish consolidation phase with weak RSI and negative MACD. Entry near 1,020–1,050 ₹ offers margin of safety, while exits around 1,120–1,150 ₹ provide profit-taking opportunities. Long-term investors may find value due to low P/E, strong ROE/ROCE, and high dividend yield, while short-term traders should wait for reversal signals before entering aggressively.
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