Why is Mahanagar Gas Ltd. ?
1
High Management Efficiency with a high ROE of 15.76%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 28.66%
4
Flat results in Sep 25
- PAT(Q) At Rs 191.37 cr has Fallen at -33.3%
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.79 times
- OPERATING PROFIT TO NET SALES (Q) Lowest at 16.48%
5
With ROE of 15.8, it has a Very Attractive valuation with a 1.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -14.06%, its profits have fallen by -14.1%
6
High Institutional Holdings at 55.72%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Below par performance in long term as well as near term
- Along with generating -14.06% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Mahanagar Gas for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mahanagar Gas
-14.12%
-0.47
30.20%
Sensex
7.07%
0.61
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
28.66%
EBIT Growth (5y)
13.07%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.17
Tax Ratio
24.71%
Dividend Payout Ratio
28.36%
Pledged Shares
0
Institutional Holding
55.72%
ROCE (avg)
27.35%
ROE (avg)
15.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
18
Price to Book Value
1.83
EV to EBIT
8.78
EV to EBITDA
6.62
EV to Capital Employed
2.01
EV to Sales
1.30
PEG Ratio
NA
Dividend Yield
1.56%
ROCE (Latest)
22.89%
ROE (Latest)
15.76%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
2What is working for the Company
NO KEY POSITIVE TRIGGERS
-8What is not working for the Company
ROCE(HY)
Lowest at 20.47%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 184.95 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.91 times
PAT(Q)
At Rs 201.15 cr has Fallen at -9.1%
Loading Valuation Snapshot...
Here's what is not working for Mahanagar Gas
Profit After Tax (PAT) - Quarterly
At Rs 201.15 cr has Fallen at -9.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 184.95 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 17.91 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






