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Mahanagar Gas Ltd

NSE: MGL BSE: 539957

1126.40

(-0.44%)

Thu, 26 Feb 2026, 06:52 am

Mahanagar Gas Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (4x coverage).
  • Mahanagar Gas's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividend payments have increased, but Mahanagar Gas only paid a dividend in the past 4 years.
  • Mahanagar Gas has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Mahanagar Gas's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

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    Cons

    • Mahanagar Gas's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
    • Mahanagar Gas's earnings growth is positive but not above the India market average.
    • Mahanagar Gas's earnings growth is positive but not above the low risk savings rate of 7.2%.
    • Mahanagar Gas's earnings are expected to decrease over the next year.
    • Mahanagar Gas's net income is expected to increase but not above the 50% threshold in 2 years time.

    health

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    Pros

    • Mahanagar Gas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Mahanagar Gas is profitable, therefore cash runway is not a concern.
    • Mahanagar Gas is profitable, therefore cash runway is not a concern.
    • Mahanagar Gas has no debt, it does not need to be covered by operating cash flow.
    • Mahanagar Gas has no debt, it does not need to be covered by short term assets.
    • Mahanagar Gas's cash and other short term assets cover its long term commitments.
    • Mahanagar Gas has no debt compared to 5 years ago when it was 1.1%.
    • Mahanagar Gas has no debt, therefore coverage of interest payments is not a concern.
    • Mahanagar Gas has no debt.
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • Sanjib's remuneration is lower than average for companies of similar size in India.
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    Cons

    • The average tenure for the Mahanagar Gas board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the Mahanagar Gas management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Mahanagar Gas is not covered by any analysts.
      • Mahanagar Gas has significant price volatility in the past 3 months.

      past

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      Pros

      • Mahanagar Gas's 1-year earnings growth exceeds its 5-year average (45.1% vs 20.2%)
      • Mahanagar Gas has delivered over 20% year on year earnings growth in the past 5 years.
      • Mahanagar Gas used its assets more efficiently than the IN Gas Utilities industry average last year based on Return on Assets.
      • Mahanagar Gas has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Mahanagar Gas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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      Cons

      • Mahanagar Gas's earnings growth has not exceeded the IN Gas Utilities industry average in the past year (45.1% vs 59.5%).

      value

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      Pros

      • Mahanagar Gas is good value based on assets compared to the IN Gas Utilities industry average.
      • Mahanagar Gas is good value based on earnings compared to the IN Gas Utilities industry average.
      • 539957 outperformed the Gas Utilities industry which returned -4.1% over the past year.
      • 539957 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:539957 is up 17.2% outperforming the Gas Utilities industry which returned 15.1% over the past month.
      • BSE:539957 is up 17.2% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Mahanagar Gas's share price is below the future cash flow value, but not at a moderate discount (< 20%).
      • Mahanagar Gas's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • Mahanagar Gas is poor value based on expected growth next year.
      • Mahanagar Gas is overvalued based on earnings compared to the India market.

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