Risk factor
Low price volatility
Profitability factor
Strong margins and returns
About
Established in 1995 and based in Mumbai, India, Mahanagar Gas Limited functions as a key player in the Indian natural gas distribution sector. The company delivers a variety of natural gas solutions, including piped natural gas (PNG) for residential, business, and industrial purposes, as well as compressed natural gas (CNG). Beyond gas supply, it also produces gas geysers. Its substantial operational footprint comprises 290 CNG filling stations equipped with 1,738 dispensing points, serving approximately 850,000 vehicles. The underlying infrastructure features 550 kilometers of steel pipeline and roughly 5,670 kilometers of MDPE pipeline, extending services to 4,339 commercial and industrial establishments. PNG finds widespread utility for applications like cooking and water heating, alongside critical uses in hospitals, nursing homes, hotels, flight kitchens, restaurants, and places of worship.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITD
Target Price
The average target price of MGL.NS is 1350 and suggests 22.6% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in