Mahanagar Gas Ltd (MGL) AI Stock Analysis

• Market Cap: ₹132.80B
• Dividend Yield: 2.23%
• Average Volume (3M): 15.65K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.41
• Revenue Growth: 19.68%
• EPS Growth: -10.62%
• Country: IN
• Employees: 532
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 32.80
• Shares Outstanding: 98,777,780
• 10 Day Avg. Volume: 18,544
• 30 Day Avg. Volume: 15,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,555.00
• Price Target Upside: 19.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: ₹1,517.00 ▲(16.12% Upside)

Mahanagar Gas Ltd's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust balance sheet and low P/E ratio make it appealing, though technical indicators suggest caution due to potential overbought conditions. Cash flow variability is a concern that should be monitored.

Mahanagar Gas Ltd Business Overview & Revenue Model

Company Description

Mahanagar Gas Limited operates as a natural gas distribution company in India. The company provides domestic piped natural gas (PNG), commercial PNG, industrial PNG, and compressed natural gas (CNG), as well as manufactures gas geysers. It operates 290 CNG filing stations that provides gas to approximately 8.5 lakh vehicles with 1,738 dispensing points; 550 km of steel pipeline and approximately 5,670 km of MDPE pipeline; and 4,339 commercial and industrial customers. The company's PNG is used for various applications, such as cooking and water heating, as well as in hospitals, nursing homes, hotels, flight kitchens, restaurants, places of worship, etc. Mahanagar Gas Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

Mahanagar Gas Ltd generates revenue through the distribution and sale of natural gas. Its key revenue streams include the sale of piped natural gas (PNG) to residential, commercial, and industrial customers and the sale of compressed natural gas (CNG) for automotive use. The company benefits from long-term customer relationships and regulatory frameworks that support natural gas usage. MGL also engages in partnerships with government entities and other corporations to expand its infrastructure and service reach, contributing to its financial growth and stability.

Mahanagar Gas Ltd Financial Statement Overview

Summary

Mahanagar Gas Ltd demonstrates strong financial performance with steady revenue growth and solid profitability. The company maintains a sound balance sheet with low leverage and a high equity ratio, indicating financial stability. However, cash flow variability, particularly in free cash flow, suggests potential cash management challenges.

Income Statement

Mahanagar Gas Ltd has shown solid revenue growth from 2022 to 2025, with a notable increase in total revenue from 2024 to 2025. The gross profit margin remained strong, although net profit margins have slightly declined over the years. The EBIT and EBITDA margins indicate efficient operational performance, though there's a slight decline in EBIT in 2025. Overall, the income statement reflects a stable and growing revenue base with strong profitability.

Balance Sheet

The company's balance sheet exhibits strong financial health, with a low debt-to-equity ratio indicating low leverage. The equity ratio is robust, showcasing a solid foundation of stockholders' equity relative to total assets. Return on equity remains strong, albeit slightly declining in the most recent year. Overall, the balance sheet demonstrates financial stability and efficient capital management.

Cash Flow

Mahanagar Gas Ltd has exhibited fluctuating free cash flow growth, with a significant decrease in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the drop in free cash flow signals potential challenges in maintaining cash reserves. Overall, while operational cash flow remains strong, the variability in free cash flow suggests a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.64B	72.64B	62.90B	62.99B	35.60B	21.53B
Gross Profit	23.40B	25.84B	26.45B	18.64B	9.16B	12.57B
EBITDA	16.90B	15.70B	20.19B	12.96B	10.10B	10.14B
Net Income	10.41B	10.41B	12.76B	7.90B	5.97B	6.20B
Balance Sheet
Total Assets	82.70B	82.70B	73.81B	60.32B	52.34B	46.01B
Cash, Cash Equivalents and Short-Term Investments	13.87B	13.87B	14.39B	15.31B	15.51B	14.86B
Total Debt	2.01B	2.01B	1.41B	1.15B	1.03B	741.05M
Total Liabilities	23.75B	23.75B	22.46B	18.98B	16.36B	13.69B
Stockholders Equity	58.80B	58.80B	51.30B	41.34B	35.97B	32.32B
Cash Flow
Free Cash Flow	0.00	2.22B	8.33B	2.56B	2.55B	4.66B
Operating Cash Flow	0.00	14.06B	16.16B	9.69B	9.04B	8.06B
Investing Cash Flow	0.00	-10.52B	-10.82B	-6.49B	-5.39B	-4.44B
Financing Cash Flow	0.00	-3.32B	-4.99B	-2.85B	-3.10B	-3.49B

Mahanagar Gas Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1306.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MGL, the sentiment is Positive. The current price of 1306.45 is above the 20-day moving average (MA) of 1300.31, below the 50-day MA of 1347.15, and below the 200-day MA of 1319.91, indicating a neutral trend. The MACD of 2.02 indicates Negative momentum. The RSI at 57.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MGL.

Mahanagar Gas Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGL	78 Outperform	301.28B	18.09	16.18%	0.70%	8.41%	-14.33%
MGL	73 Outperform	₹132.80B	12.42		2.23%	19.68%	-10.62%
TORNTPOWER	67 Neutral	638.04B	22.89	16.97%	1.50%	-2.95%	16.18%
RELINFRA	66 Neutral	105.82B	1.96	34.22%	―	-5.77%	0.00%
GENUSPOWER	64 Neutral	102.09B	23.48	16.67%	0.73%	119.77%	228.13%
CESC	63 Neutral	224.68B	16.31	11.40%	2.65%	9.43%	-2.06%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Mahanagar Gas Ltd Corporate Events

Mahanagar Gas to Engage with Investors at Upcoming Conference

Mahanagar Gas Limited has announced its participation in an upcoming Analyst and Institutional Investors Conference, scheduled for September 3, 2025. This meeting, which will be held in person, is part of the company’s ongoing efforts to engage with investors and analysts, potentially impacting its market perception and investor relations. The company has assured that no unpublished price-sensitive information will be disclosed during this meeting.

Mahanagar Gas Ltd Appoints New Secretarial Auditors

Mahanagar Gas Limited has announced a change in its secretarial auditors, appointing M/s M P Sanghavi & Associates LLP for a five-year term starting from the financial year 2025-26. This decision, approved at the company’s 30th Annual General Meeting, reflects a strategic move to ensure robust corporate law compliance, leveraging the extensive experience of the new auditors in the field.

Mahanagar Gas Limited Completes Amalgamation of Subsidiary

Mahanagar Gas Limited has announced the effective date for the amalgamation of its wholly-owned subsidiary, Unison Enviro Private Limited, into the parent company. This merger, approved by the National Company Law Tribunal, is effective as of August 16, 2025, and results in the dissolution of Unison Enviro without winding up. The authorized share capital of Mahanagar Gas Limited has been amended to reflect the merger, indicating potential growth and expansion opportunities for the company. This strategic move is expected to streamline operations and enhance the company’s market positioning, benefiting shareholders and stakeholders.

Mahanagar Gas Limited to Engage with Analysts and Investors in August 2025

Mahanagar Gas Limited has announced its participation in several upcoming Analyst and Institutional Investors Meetings scheduled for August 2025. These meetings, which will be held in person, are part of the company’s efforts to engage with stakeholders and provide updates on its operations and strategies. The announcement reflects Mahanagar Gas Limited’s commitment to transparency and proactive communication with the investment community, potentially impacting its market perception and investor relations.

Mahanagar Gas to Engage with Investors in August 2025 Meetings

Mahanagar Gas Limited has announced its participation in several upcoming analyst and institutional investor meetings, scheduled for August 2025. These meetings, which will be held in person, aim to engage with stakeholders and provide insights into the company’s operations and strategic direction, potentially impacting its market positioning and investor relations.

Mahanagar Gas Limited to Engage with Analysts and Investors in August 2025

Mahanagar Gas Limited has announced its participation in several upcoming Analyst and Institutional Investors Meetings, scheduled for August 2025. These meetings, which will be held in person, are part of the company’s efforts to engage with stakeholders and provide insights into its operations. The meetings are set to take place at Emkay’s Global Conference, Equirus Annual India Conference, and Antique’s Flagship India Conference. This engagement reflects the company’s commitment to transparency and maintaining strong relationships with investors, although no unpublished price-sensitive information will be disclosed.

Mahanagar Gas Limited Announces 30th AGM and Annual Report Release

Mahanagar Gas Limited has announced the 30th Annual General Meeting (AGM) scheduled for August 22, 2025, which will be conducted via video conference. The company has released its Integrated Annual Report for the financial year 2024-25, available to shareholders electronically. This announcement ensures compliance with SEBI regulations and facilitates shareholder engagement through digital means, reflecting Mahanagar Gas’s commitment to transparency and modern communication practices.

Mahanagar Gas Sets Record Date for Final Dividend

Mahanagar Gas Limited has announced that the record date for determining shareholders’ entitlement to the final dividend for the financial year 2024-25 is set for August 14, 2025. The Board of Directors recommended a final dividend of Rs. 18 per equity share, which is subject to shareholder approval at the upcoming AGM on August 22, 2025. If approved, the dividend will be distributed within 30 days post-AGM, impacting shareholders and reflecting the company’s financial health and commitment to returning value to its investors.