Stock Data
Ticker: MGL
Exchange :NSE and BSE
Industry: Natural Gas
The Share price of Mahanagar Gas share price is Rs 874.20 as on 19 Aug,, 2022, 03:22 PM IST. The price has declined by 1.97% based on previous share price of Rs. 906.1. In last 1 Month, Mahanagar Gas share price moved up by 10.97%. To analyse the share price we need to consider few metrics. The PE ratio is 15.26. Price to Book Ratio of 2.49. The Dividend Yield of 2.80. EPS (trailing 12 month) of Mahanagar Gas share is 58.52. The share has reached high price of Rs 1,206.30 and low price of Rs 665.80 in last in last 52 weeks.
Shareholding
As on 30 June 2022, the Promotersown 32.5%. There is no change in promoter holding from 31 Mar 2022 to 30 Jun 2022. There is zero pledge in Promters’ holdings. The mutual fund holding have decreased to 2.76%. FII/FPI has increased to 25.81%. Other holdings have increased to 25.64%.
Performance Highlights- EBITDA stood at INR 286 crore grew by 32.5%. EBITDA margin stood at 19.63%. Net profit after tax has increased by 40.5% to INR 185 crore. Revenue increased by 138.9% YoY to INR 1593.2 crore. The overall gas sales volumes have reached 3.448 MMSCMD, an increase of 8.8%. The company currently operates 292 CNG stations and plans to add 25 new CNG stations in FY23. The company has planned capex of INR 700-800 crores for FY23 while capex for Q1FY23 is only INR 150 crore.
The Company has maintained a strong ROE of 22.39% over the past 3 years.It has even achieved a healthy ROCE of 29.34% over the past 3 years.The company has a good cash flow management; CFO/PAT stands at 1.29. It is a debt free company.
Company Description– Mahanagar Gas Limited, (MGL) is one of the India’s leading Natural Gas Distribution Companies. It was incorporated on 8th May 1995.The company has got a track record of almost 100% reliability in its gas supply. MGL is connected with 1.94 Million Households,over 4169 small commercial establishments and 215 Industrial Establishments. The major objectives of the company includes reduction of pollution, to expand the operation area in Mumbai and beyond. The main focus of the company is to increase the level of consumer satisfaction and provide quality services. The product portfolio includes Domestic PNG, Commercial PNG and CNG. The company procures the entire gas requirement for CNG and domestic PNG from low-cost domestic gas. The company has 259 CNG stations, 1.5 million PNG customers, and a pipeline network of 5,650 km.The company is promoted by GAIL India Ltd who has a deep understanding and interest in the domestic gas distribution business. It holds 32.5% stake in the company.
Growth Factors-The major factors contributing to the growth of MGL includes government’s aim to increase the share of gas in India’s energy mix to 15% by 2025 which is currently operating at 6%. It has even taken measures to reduce the air pollution through strong growth in CNG and domestic PNG volumes for MGL.The company is adding more number of infrastructure to cater to more number of CNG and PNG customers.This would result in higher customer conversion rates.The company is improving its standard through digital interventions. MGL is in process of setting up a CNG Composite Dispensing Unit at Mumbai and in nearby municipalities where there is a constraint of land.
Industry Presence- The oil and gas sector is among the eight core industries in India. It plays an important role in decision making for the economy. According to the Research of International Energy Agency the consumption of natural gas in India is expected to grow by 25 BCM with an annual growth of 9% until 2024.Even the government has taken measures to improve the increasing demand. It has allowed 100% Foreign Direct Investment (FDI) in natural gas, petroleum products and refineries sectors. The India oil and gas market is expected to register a CAGR of more than 3% between 2022-2027.
Key Risks- The COVID-19 has led to a slowdown in demand in this sector. Moreover the price revision by the government also affects the gas price as a whole. It becomes difficult for MGL for gas procurement. Geo-political situation may lead to volatility in gas prices. The impact of currency depreciation may hamper profitability.