energy

Mahanagar Gas

MGL · Nifty 50

1,208.9

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionenergy sector. Flow: outflow. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score90/100 (STRONG). 1 positive flags, 1 concerns.
Historical Context54 similar technical setups. Average outcome: -11.5% decline. 0% positive.

Fundamental

90/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Mahanagar Gas scores 90/100 on fundamentals (strong). Mahanagar Gas: BROAD EXPANSION regime.

Fundamental Score: 90/100 · STRONG · 0 signals detected

DuPont Analysis

ROE 13.8% broken into three drivers. Each shows how efficiently the company generates returns.

ROE13.8%=
10.9%Net Margin
×
0.9xTurnover
×
1.4xLeverage

ROE of 13.85% is moderate efficiency-driven and stable. Net margin of 10.9% × asset turnover of 0.91x × leverage of 1.4x.

What This Means

Net margin of 10.9% means the company keeps ₹10.9 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.91x means the company efficiently uses its assets to generate revenue. Leverage of 1.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

32.7%

Operating

15.1%

Net

10.9%

declining

Gross margin 32.7% → operating margin 15.1% → net margin 10.9%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.3x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 61.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin at 1.1% — barely positive. Limited cash after capex.

Peer Comparison

Mahanagar Gas is compared against 10 peers in the energy sector.

Key Watchpoints

🟢

Breaks above ₹1269 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1148 (-5%)

Further downside risk

🟢

Energy sector entering leadership

Sector rotation signal

Risk Flags

🔴 1 Critical1 Positive2 total flags
🔴Cash covers only 3% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

Price/Sales: 1.5x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

⚠️ 1 critical + 0 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
12.5UNAVAILABLE
P/B Ratio
1.7HIGH
Market Cap
₹1081517.9L CrHIGH
From 52W High
76% of high
Sector Peers
10