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INVESTMENT INSIGHTS

Check Before You Invest : Mahanagar Gas Ltd

BSE: 539957 NSE: MGL ISIN: INE002S01010
  |   Sector:  Oil & Gas   |   Industry:  Gas Transmission/Marketing

Snapshot

Q.1 Which industry/sub-sector does Mahanagar Gas Ltd belong to?
Mahanagar Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Gas Transmission/Marketing segment.
Q.2 Is Mahanagar Gas Ltd a good quality company?
Mahanagar Gas Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Mahanagar Gas Ltd undervalued or overvalued?
Mahanagar Gas Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Mahanagar Gas Ltd a good buy now?
Mahanagar Gas Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Mahanagar Gas Ltd?
Mahanagar Gas Ltd revenue growth is 10.9% for FY-2025 , which is below its 5 year CAGR of 18.4% , indicating slower growth.
Q.2 Gross Profit margin of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.1% for FY-2025 , which is below its 5 year median of 25.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.82% for FY-2025 , which is below its 5 year median of 26.19% indicating decreasing margins.
Q.4 Net Profit Margin of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Net Profit Margin is 15.09% for FY-2025 , is below with its 5 year median of 16.77%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 22.1 25.8
Operating Profit Margin 21.82 26.19
Net Profit Margin 15.09 16.77
Q.5 Return on Asset of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Return on Asset is 13.54%, which is below its 5 year historical median of 14.03%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Return on equity is 18.94% for FY-2025 , which is below its historical median of 20.03%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Return on capital employed is 25.15% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Cash conversion cycle is -9 days, above its historical median of -11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.98 0.98
ROE 18.94 20.03
ROCE 25.15 27.19
Cash Conversion Cycle -9 days -11 days
Q.9 Debt to Equity ratio of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Mahanagar Gas Ltd?
Mahanagar Gas Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mahanagar Gas Ltd?
Promoters hold 32.50% of the Mahanagar Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mahanagar Gas Ltd vs industry peers?
Mahanagar Gas Ltd revenue CAGR is 18.43% , compared to the industry median CAGR of 13.33% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 6,923.7 2,020
Gross Profit 1,530.2 1,171.6
Operating Profit 1,507 1,184
Net Profit 1,045 790
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.98 1.21
ROE 18.94 20.03
ROCE 25.15 24.58
Cash Conversion Cycle (days) -8.72 29

Valuation & price assessment

Q.1 Stock return of Mahanagar Gas Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 0.38% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 0.4% 3.6% -10.1%
Q.3 Valuation ratios of Mahanagar Gas Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 11.09 15.77 16.95
Price to Book 1.68 2.96 2.35
Price to Sales 1.24 3.57 1.95
EV to EBITDA 6.24 9.22 11.15

Check more companies

1. Gujarat Gas
2. Indraprastha Gas
3. Guj. State Petronet
4. Mahanagar Gas
5. Confidence Futurist.
6. Rudra Gas Enterprise
7. Eastern Gases
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