Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Regulated Gas

Mahanagar Gas Limited operates as a natural gas distribution company in India. The company supplies piped natural gas (PNG) to domestic households for cooking and water heating, as well as for nursing homes, flight kitchens, and places of worship; commercial establishments, including hospitals, hotels, restaurants, and charitable trusts; and industries, such as metals, pharmaceuticals, printing and dyeing, food and beverages, oil mills, FMCG product manufacturers, power generation, and air-conditioning. It also provides compressed natural gas (CNG) to transport sector. Further, the company supplies liquefied natural gas (LNG) to heavy motor vehicles. In addition, it engages in sale of pipes and fittings required for construction of pipeline infrastructure. The company operates 348 CNG filling stations with 2,152 dispensing points; 608 kilometers of steel pipeline; and 6446 kilometers of poly-ethylene pipeline. Mahanagar Gas Limited was incorporated in 1995 and is based in Mumbai, India.

Revenue projections:

Revenue projections for MGL
Revenue projections for MGL

The projected decline in MGL's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 1.084000
forwardPE 9.771366
debtToEquity 3.545000
earningsGrowth -0.325000
revenueGrowth 0.148000
grossMargins 0.334600
operatingMargins 0.114070
trailingEps 98.650000
forwardEps 110.220000

MGL's current ratio being 1.084 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that MGL can meet its financial obligations with ease.
MGL's low earnings and revenue growth suggest shrinking profits are likely. This could reflect broader financial struggles, signaling that the company might face difficulties in sustaining its profitability.
Mahanagar Gas Limited's negative gross and operating margins indicate that the company is not generating profit from either production or day-to-day operations. This could suggest cost overruns or declining revenue, impacting its financial stability.
MGL's forward EPS surpasses its trailing EPS, reflecting expectations of higher profitability in the current year. This suggests that MGL is projected to generate stronger earnings, indicating an optimistic financial outlook compared to the prior year's results.

Price projections:

Price projections for MGL
Price projections for MGL

MGL's price projections have been steadily revised down, pointing to declining confidence in the company's outlook. This suggests that analysts are becoming more conservative in their expectations for MGL's future performance.

Recommendation changes over time:

Recommendations trend for MGL
Recommendations trend for MGL


Analysts' buy bias for MGL signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to MGL, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.