Mahanagar Gas Limited
Mahanagar Gas Limited Fundamental Analysis
Mahanagar Gas Limited (MGL.NS) shows strong financial fundamentals with a PE ratio of 9.37, profit margin of 11.74%, and ROE of 16.28%. The company generates $81.6B in annual revenue with strong year-over-year growth of 15.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MGL.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMGL.NS demonstrates superior asset utilization.
Valuation Score
ExcellentMGL.NS trades at attractive valuation levels.
Growth Score
ModerateMGL.NS shows steady but slowing expansion.
Financial Health Score
ExcellentMGL.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateMGL.NS maintains healthy but balanced margins.
Key Financial Metrics
Is MGL.NS Expensive or Cheap?
P/E Ratio
MGL.NS trades at 9.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MGL.NS's PEG of -4.55 indicates potential undervaluation.
Price to Book
The market values Mahanagar Gas Limited at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.24 times EBITDA. This is generally considered low.
How Well Does MGL.NS Make Money?
Net Profit Margin
For every $100 in sales, Mahanagar Gas Limited keeps $11.74 as profit after all expenses.
Operating Margin
Core operations generate 14.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.28 in profit for every $100 of shareholder equity.
ROA
Mahanagar Gas Limited generates $11.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mahanagar Gas Limited generates limited operating cash flow of $5.36B, signaling weaker underlying cash strength.
Free Cash Flow
Mahanagar Gas Limited generates weak or negative free cash flow of $728.30M, restricting financial flexibility.
FCF Per Share
Each share generates $7.37 in free cash annually.
FCF Yield
MGL.NS converts 0.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How MGL.NS Stacks Against Its Sector Peers
| Metric | MGL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.37 | 19.26 | Better (Cheaper) |
| ROE | 16.28% | 935.00% | Weak |
| Net Margin | 11.74% | 8855.00% | Weak |
| Debt/Equity | 0.06 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 1.50 | Neutral |
| ROA | 11.05% | -6203.00% (disorted) | Strong |
MGL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mahanagar Gas Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
146.11%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
31.12%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
43.04%
Industry Style: Defensive, Dividend, Income
High Growth