Mahanagar Gas Limited is an Indian natural gas distribution company based in Mumbai, India. It is responsible for distributing natural gas in Mumbai and adjoining areas for various domestic, commercial, and industrial applications.
As of August 31, 2018, the market capitalisation of Mahanagar Gas Limited was observed to be close to Rs.8,500 crore.
Company’s Wealth and Recent Performance
- For the quarter ended on June 30, 2018, Mahanagar Gas Limited reported its total income to be at Rs.691.61 crore. This marked an improvement of a little over 15% in revenue over the same period of the previous fiscal year.
- However, the company's profitability was impacted by an equal increase in the expenses, y-o-y. Consequently, for the June quarter of the FY 2018-19, Mahanagar Gas Limited reported its net profit after tax to be at Rs.128.33 crore - a growth of Rs.4 crore y-o-y. Considering the same metric on a quarterly basis, the net profit has improved by 22.50%.
- A marginal improvement was also seen in the earnings per share for the period. Over the course of the year, the figure improved from Rs.12.59 to Rs.12.99.
- Considering the performance for the quarter, the total volume of natural gas supplied by the company stood at 261.42 SCM (Standard Cubic Metre) million, as against 251.75 SCM million for the March quarter. This translates into an increase of 3.84% q-o-q. Considering the same on a y-o-y basis, the total volumes supplied has improved by 11.94%.
Mahanagar Gas Limited Stock Trends in 2018
- On January 2, 2018, the share price of Mahanagar Gas Limited was Rs.1,120 on the NSE. By the end of January, the shares had managed to shed more than 10% and by early February, the shares had descended into the Rs.900 region. However, over the remainder of the month, the shares made marginal gains to cross the Rs.1,000 mark again. The company announced an interim dividend of 80% in the same month.
- In March, the share price went down once again and the shares soon found themselves back into the Rs.900 region. The prices plummeted further in April with the shares eventually going below the Rs.900 mark. On April 30, the closing stock price of Mahanagar Gas was Rs.889.40.
- Things didn’t change in the month of May. The prices continued to fall with the scrip eventually hitting its 52-week low at Rs.772.15. Through most of June and July, the shares traded hands at levels varying from Rs.810 - Rs.850. It wasn’t until the final week of July that the prices rose and this time, the shares crossed the Rs.950 mark once again.
- However, after a period of recovery in late July, the shares moved on to shed those gains gradually in August. The scrip retreated back to its previous levels at Rs.860 with the closing price on August 31, 2018, being Rs.865.75 on the NSE.
Mahanagar Gas Limited Stock Trends in 2016 and 2017
- The equity shares of Mahanagar Gas Limited were listed on the bourses in July 2016. The scrip made its debut on the NSE and BSE at levels close to Rs.530. The shares gained a little over 15% over the course of July and August to touch the Rs.600 mark. In September, the company announced a final dividend of 175%.
- The prices continued to rise handsomely over the remainder of the year. In early October, the shares crossed the Rs.700 mark. Through the course of November and December, the shares traded hands at levels above Rs.740, without incurring any sharp losses. The closing price of the scrip at the end of the year was Rs.787.85.
- At the start of 2017, the stock price of Mahanagar Gas Limited was Rs.788.65. The scrip gained a little over 10% over the course of the month to cross the Rs.800 mark. In February, the company announced an interim dividend of 80% which helped the shares gain more momentum. The shares continued to be traded at levels above Rs.800 for most of March and April.
- At the end of April, the shares crossed the psychologically important mark of Rs.1,000. However, the scrip failed to stabilise at those levels and soon descended back into the Rs.900 region. Nonetheless, the shares continued to enjoy a good run through the course of May, June, and July as the shares were traded at levels well above Rs.950.
- In August, the shares crossed the Rs.1,000 mark again and this time, they managed to sustain at those levels. In September, the company announced a final dividend of 110% by which point, the shares were well into the Rs.1,100 region.
- The Mahanagar Gas Limited stock price continued to move up until early November. After reaching its 52-week high at Rs.1,377.50, the shares took a sharp nosedive and lost more than 15% in a matter of two weeks. For the remainder of the year, the shares were seen trading hands at levels varying from Rs.1,050 - Rs.1,130. The closing price on December 29, 2017, was Rs.1,094.50.
Should you invest in Mahanagar Gas Limited?
- Mahanagar Gas Limited is a natural gas distribution company which primarily caters to Mumbai and surrounding areas. It is responsible for marketing and supplying natural gas in the form of CNG and PNG for an array of industrial, commercial, and domestic applications. It has laid more than 4,500 km of PE pipeline and 429 km steel pipeline. It also has more than 220 CNG filling stations and more than 1,200 dispensing points.
- For the quarter ended on June 30, 2018, the company reported its total income to be at Rs.691.6 crore - an increase of roughly Rs.50 crore y-o-y. Its net profit after tax for the period was reported to be at Rs.128.33 crore. The company is fundamentally sound and financially strong. Over the years, it has delivered good results.
- Considering the performance of the stock, the scrip had an excellent year in 2017 having gained more than 20% over the course of the year. However, in 2018, the shares have been quite bearish and as of August 2018, the shares have shed close to 15%. However, these valuations are not as cheap as one may expect them to be.
- The company is pegged for future growth as it continues to invest and increase its customer base. Over the course of the next five years, it aims to increase its customer base to about 10 lakh households while increasing the length of its steel and PE pipelines as well by a substantial margin. As a result, we are likely to see a good growth in the future although, investors need to keep a practical outlook here.
- Before investing in this stock, it is strongly advised to research thoroughly.
Mahanagar Gas Limited is a natural gas distribution company which primarily supplies natural gas in Mumbai and its surrounding areas. It supplies piped natural gas (PNG) for an array of domestic, commercial, and industrial applications. It presently caters to more than 1 million households, 3,500 small establishments and 69 industrial establishments. In addition to this, Mahanagar Gas Limited also supplies compressed natural gas (CNG) to filling stations across Mumbai, serving more than half a million vehicles.
History of the Company
Mahanagar Gas Limited was incorporated in the year 1995 as a joint venture between GAIL, Royal Dutch Shell and the Government of Maharashtra. In 1997, the company signed its first contract with GAIL to supply and transport natural gas. Towards the end of 2011, the company finished laying 2,000 km of PE pipeline and 200 km of steel pipeline to successfully transport natural gas. Over the years, the company continued to expand its reach and customer base.
Management of the Company
Mr. Akhil Mehrotra - Chairman
Mr. Akhil Mehrotra is presently the Director on the Board of Mahanagar Gas Limited and also serves as its Chairman. He has held this post since May 2017. Prior to his appointment to the present post, he worked as the Director of Downstream Business with BG India and also as the Director of Business Development and Regulatory Affairs at Gujarat Gas Company Limited. He has also worked with Reliance Group of Industries handling power, telecom, and petrochemicals businesses. He is considerably experienced when it comes to petrochemicals and power sectors. In addition to this, he is adept at management of gas business, gas market development, project management, and risk management.
Mr. Sanjib Dutta - Managing Director
Mr. Sanjib Dutta is currently the Managing Director and an Additional Director of Mahanagar Gas Limited. He is also associated with GAIL India Limited and ONGC Petro Additions Limited, where he serves respectively as an Executive Director and Director. He has been a part of the natural gas sector for more than 32 years and has handled various assignments like business development, marketing, project development and construction, and operation and maintenance of pipelines and LNG terminals.
Mr. Satish Gavai - Additional Non-Executive Director
Mr. Satish Gavai presently serves as an Additional Non-Executive Director of Mahanagar Gas Limited. Prior to this, he was associated with the Maharashtra Industrial Development Corporation where he served as the Chief Executive Officer. He also held the same position at Maharashtra Housing and Area Development Authority. In addition to his present position, Mr. Gavai serves as the Chief Secretary of Industries, Government of Maharashtra. He is a part of the 1984 batch of the Indian Administrative Services and has served the state and the country for more than 30 years. He holds a Bachelor's degree in Physics from the University of Mumbai and a Masters’ degree in Professional Studies from the Cornell University, U.S.A.
Mahanagar Gas Limited Listings in NSE, BSE, and Indices
The equity shares of Mahanagar Gas Limited are available to the general public for trading on the country’s two prominent stock exchanges - the National Stock Exchange and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- NSE Code: MGLEQ
- BSE Code: 539957
- ISIN: INE002S01010
- Sector: Petroleum
Coming to the stock market indices, the company comprises the following:
- Nifty 500
- Nifty 200
- Nifty Midcap 150
- Nifty Midcap 100
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE SmallCap
- S&P BSE Utilities
Mumbai - 400-051
Email id: firstname.lastname@example.org
Contact number: 6678-5000
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