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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 539957 | NSE: MGL

Mahanagar Gas Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:13 am

Market Cap 12,004 Cr.
Current Price 1,215
High / Low 1,989/1,075
Stock P/E10.4
Book Value 560
Dividend Yield2.47 %
ROCE36.6 %
ROE27.8 %
Face Value 10.0
PEG Ratio0.73

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mahanagar Gas Ltd

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Petronet LNG Ltd 50,468 Cr. 336 385/21512.9 1232.97 %26.4 %22.2 % 10.0
Mahanagar Gas Ltd 12,004 Cr. 1,215 1,989/1,07510.4 5602.47 %36.6 %27.8 % 10.0
Indraprastha Gas Ltd 27,181 Cr. 388 571/30616.9 1342.32 %28.8 %21.8 % 2.00
Confidence Petroleum India Ltd 2,331 Cr. 72.0 120/62.633.4 39.80.14 %13.5 %10.2 % 1.00
Adani Total Gas Ltd 74,166 Cr. 674 1,198/546106 35.60.04 %21.2 %20.5 % 1.00
Industry Average33,230.00 Cr537.0035.92178.481.59%25.30%20.50%4.80

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6158301,0281,0871,4551,5631,6711,6101,5381,5711,5691,5671,590
Expenses3125289258711,1691,3101,4151,2211,0171,0921,1201,1731,171
Operating Profit304302103215286253256390521479449394418
OPM %49%36%10%20%20%16%15%24%34%30%29%25%26%
Other Income19232223202632343944484540
Interest2222222232343
Depreciation45474856545559646266687872
Profit before tax27627575180250221227357496454426357384
Tax %26%26%24%27%26%26%24%25%26%25%26%26%26%
Net Profit20420457132185164172269368338317265285
EPS in Rs20.6620.685.7513.3418.7516.6017.4227.2137.3034.2732.1126.8328.81

Last Updated: October 22, 2024, 1:39 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 1:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,5141,8852,0952,0782,0342,2332,7912,9722,1533,5606,2996,2456,296
Expenses1,0321,3971,6051,5691,3901,4531,9061,9191,2192,6365,1154,4024,557
Operating Profit4834884905096447808851,0539349241,1841,8431,740
OPM %32%26%23%24%32%35%32%35%43%26%19%30%28%
Other Income32344147535878998186112175177
Interest101210077891212
Depreciation7181808395111126162174196231274283
Profit before tax4424424494726017278379848348061,0561,7331,621
Tax %33%33%33%34%34%34%35%19%26%26%25%26%
Net Profit2992973013113934785467946205977901,2891,205
EPS in Rs33.4133.2733.6934.8039.8348.3855.3280.3362.7260.4379.98130.50122.02
Dividend Payout %52%53%52%50%48%39%36%44%37%41%20%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-0.67%1.35%3.32%26.37%21.63%14.23%45.42%-21.91%-3.71%32.33%63.16%
Change in YoY Net Profit Growth (%)0.00%2.02%1.98%23.04%-4.74%-7.40%31.20%-67.34%18.20%36.04%30.84%

Mahanagar Gas Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:17%
3 Years:43%
TTM:1%
Compounded Profit Growth
10 Years:16%
5 Years:19%
3 Years:28%
TTM:0%
Stock Price CAGR
10 Years:%
5 Years:3%
3 Years:12%
1 Year:2%
Return on Equity
10 Years:23%
5 Years:23%
3 Years:22%
Last Year:28%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital89898989999999999999999999
Reserves1,0931,2081,3181,6391,7411,9972,3002,8543,1343,4994,0355,0445,435
Borrowings1081653106774103115139149
Other Liabilities5876647436377829141,0421,1091,2951,5341,7831,9442,102
Total Liabilities1,7791,9692,1662,3702,6243,0103,4414,1284,6015,2346,0327,2267,784
Fixed Assets9269911,0641,1291,3051,5321,7632,0492,1692,6143,0263,5433,729
CWIP315345380429412357370487560616709774840
Investments3023423713934676886541,1211,0251,0881,3101,6361,890
Other Assets2372903504194414346544718479169881,2731,325
Total Assets1,7791,9692,1662,3702,6243,0103,4414,1284,6015,2346,0327,2267,784

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4393984274195326526859858069049691,563
Cash from Investing Activity +-285-200-261-222-263-419-439-755-444-539-649-1,267
Cash from Financing Activity +-157-185-176-191-284-226-235-242-349-310-285-312
Net Cash Flow-313-105-15812-11135435-15

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow473.00480.00474.00504.00641.00779.00885.00-66.00860.00821.00-114.00-138.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days22211716171413822191716
Inventory Days6555885511534
Days Payable393432334339403576482634
Cash Conversion Cycle-11-8-10-12-18-16-22-21-44-24-7-13
Working Capital Days-88-77-80-59-79-86-78-95-149-104-62-70
ROCE %39%35%33%30%34%37%37%37%27%23%27%37%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters32.50%32.50%32.50%32.50%32.50%32.50%32.50%32.50%32.50%32.50%32.50%32.50%
FIIs25.32%24.98%25.81%28.37%29.73%30.95%32.38%30.51%30.85%30.54%31.49%34.20%
DIIs19.05%17.34%16.06%15.58%15.61%14.93%15.15%16.10%17.23%17.40%16.67%15.46%
Government10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00%
Public13.13%15.18%15.63%13.56%12.15%11.60%9.96%10.89%9.43%9.55%9.32%7.84%
No. of Shareholders1,92,4552,18,2212,14,2501,99,7241,81,2221,67,7171,54,3831,53,5821,41,6171,49,7181,47,5401,42,738

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund918,1390.72178.16250,0002024-12-21267.26%
UTI Value Fund550,0000.99106.72250,0002024-12-21120%
Aditya Birla Sun Life PSU Equity Fund403,4431.3378.28250,0002024-12-2161.38%
UTI Dividend Yield Fund400,0001.7377.62250,0002024-12-2160%
HDFC Multi Cap Fund289,4630.3156.17250,0002024-12-2115.79%
Baroda BNP Paribas Small Cap Fund270,0003.3252.39250,0002024-12-218%
Tata Retirement Savings Fund - Progressive Plan - Regular Plan261,0002.3250.64250,0002024-12-214.4%
Bandhan Flexi Cap Fund250,0000.6148.51250,0002024-12-210%
Tata Retirement Savings Fund - Moderate Plan - Regular Plan234,0002.0345.41250,0002024-12-21-6.4%
Baroda BNP Paribas Value Fund200,0002.3538.81250,0002024-12-21-20%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue10.0010.00
Basic EPS (Rs.)129.2179.98
Diluted EPS (Rs.)129.2179.98
Cash EPS (Rs.)157.95103.38
Book Value[Excl.RevalReserv]/Share (Rs.)519.85418.53
Book Value[Incl.RevalReserv]/Share (Rs.)519.85418.53
Revenue From Operations / Share (Rs.)636.78637.71
PBDIT / Share (Rs.)204.37131.21
PBIT / Share (Rs.)175.63107.81
PBT / Share (Rs.)174.29106.86
Net Profit / Share (Rs.)129.2179.98
NP After MI And SOA / Share (Rs.)129.2179.98
PBDIT Margin (%)32.0920.57
PBIT Margin (%)27.5816.90
PBT Margin (%)27.3616.75
Net Profit Margin (%)20.2912.54
NP After MI And SOA Margin (%)20.2912.54
Return on Networth / Equity (%)24.8719.11
Return on Capital Employeed (%)30.5323.81
Return On Assets (%)17.2913.09
Asset Turnover Ratio (%)0.930.00
Current Ratio (X)1.121.28
Quick Ratio (X)1.101.26
Dividend Payout Ratio (NP) (%)21.6631.88
Dividend Payout Ratio (CP) (%)17.7224.66
Earning Retention Ratio (%)78.3468.12
Cash Earning Retention Ratio (%)82.2875.34
Interest Coverage Ratio (X)151.79138.03
Interest Coverage Ratio (Post Tax) (X)96.9785.14
Enterprise Value (Cr.)13047.439495.54
EV / Net Operating Revenue (X)2.071.51
EV / EBITDA (X)6.467.33
MarketCap / Net Operating Revenue (X)2.141.54
Retention Ratios (%)78.3368.11
Price / BV (X)2.632.35
Price / Net Operating Revenue (X)2.141.54
EarningsYield0.090.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mahanagar Gas Ltd as of December 22, 2024 is: 1,659.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, Mahanagar Gas Ltd is Undervalued by 36.55% compared to the current share price 1,215.00

Intrinsic Value of Mahanagar Gas Ltd as of December 22, 2024 is: 1,895.25

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, Mahanagar Gas Ltd is Undervalued by 55.99% compared to the current share price 1,215.00

Last 5 Year EPS CAGR: 14.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 33.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -85.58, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -17.17, which is a positive sign.
  4. The company has higher reserves (2,715.15 cr) compared to borrowings (53.08 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (2.85 cr) and profit (507.46 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mahanagar Gas Ltd:
      1. Net Profit Margin: 20.29%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 30.53% (Industry Average ROCE: 25.3%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 24.87% (Industry Average ROE: 20.5%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 96.97
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.1
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 10.4 (Industry average Stock P/E: 35.92)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Mahanagar Gas Ltd. is a Public Limited Listed company incorporated on 08/05/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L40200MH1995PLC088133 and registration number is 088133. Currently Company is involved in the business activities of Manufacture of gas; distribution of gaseous fuels through mains. Company’s Total Operating Revenue is Rs. 3560.18 Cr. and Equity Capital is Rs. 98.78 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    LPG/CNG/PNG/LNG Bottling/DistributionMGL House, Block No : G-33, Bandra-Kurla Complex, Mumbai Maharashtra 400051info@mahanagargas.com
    http://www.mahanagargas.com
    Management
    NamePosition Held
    Mr. Sandeep Kumar GuptaChairman
    Mr. Ashu ShinghalManaging Director
    Mr. Sanjay ShendeDeputy Managing Director
    Mr. Rajeev Bhaskar SahiIndependent Director
    Ms. Malvika SinhaIndependent Director
    Mr. Syed S HussainIndependent Director
    Mr. Venkatraman SrinivasanIndependent Director
    Dr. Harshadeep KambleGovernment Nominee Director

    FAQ

    What is the latest intrinsic value of Mahanagar Gas Ltd?

    The latest intrinsic value of Mahanagar Gas Ltd as on 22 December 2024 is ₹1659.06, which is 36.55% higher than the current market price of ₹1,215.00. The stock has a market capitalization of 12,004 Cr. and recorded a high/low of 1,989/1,075 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹5,435 Cr and total liabilities of ₹7,784 Cr.

    What is the Market Cap of Mahanagar Gas Ltd?

    The Market Cap of Mahanagar Gas Ltd is 12,004 Cr..

    What is the current Stock Price of Mahanagar Gas Ltd as on 22 December 2024?

    The current stock price of Mahanagar Gas Ltd as on 22 December 2024 is 1,215.

    What is the High / Low of Mahanagar Gas Ltd stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of Mahanagar Gas Ltd stocks is 1,989/1,075.

    What is the Stock P/E of Mahanagar Gas Ltd?

    The Stock P/E of Mahanagar Gas Ltd is 10.4.

    What is the Book Value of Mahanagar Gas Ltd?

    The Book Value of Mahanagar Gas Ltd is 560.

    What is the Dividend Yield of Mahanagar Gas Ltd?

    The Dividend Yield of Mahanagar Gas Ltd is 2.47 %.

    What is the ROCE of Mahanagar Gas Ltd?

    The ROCE of Mahanagar Gas Ltd is 36.6 %.

    What is the ROE of Mahanagar Gas Ltd?

    The ROE of Mahanagar Gas Ltd is 27.8 %.

    What is the Face Value of Mahanagar Gas Ltd?

    The Face Value of Mahanagar Gas Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mahanagar Gas Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE