Oil, Gas & Consumable Fuels · NSE/BSE: MGL
Mahanagar Gas Limited
LPG/CNG/PNG/LNG Supplier
Market Cap ₹0.12L Cr
Verdict: High
Quality Scores
Multi-Bagger
68/100
Compounder Quality
84/100
Management Credibility
85/100
Governance
90/100
Cash Flow Quality
94/100
AI Summary
Mahanagar Gas Limited (MGL) is a dominant city gas distribution (CGD) player specializing in Mumbai and surrounding regions. The company maintains an enviable balance sheet with near-zero debt and consistent cash generation despite operating in a regulated and commodity-sensitive environment. Historically, MGL had been a low-growth utility play, but recent years show a shift toward aggressive expansion and subsidiary acquisition. Revenue growth has accelerated to 14% TTM, although margins remain volatile due to fluctuations in gas sourcing costs and regulatory pricing caps. Overall, it…
Top Opportunities
- Virtually debt-free balance sheet
- Resilient Cash from Operations (CFO/PAT > 1)
- Strong negative cash conversion cycle (-7 days)
Top Risks
- Steep margin compression from 29% to 18%
- Declining trend in Return on Equity (ROE)
- Net Profit projected to fall 35% between 2024 and 2026
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