MGL - Buy Opportunity AnalysisNSE:MGL
Mahanagar Gas Limited is a natural gas distribution company. The Company is engaged in the distribution of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and its adjoining areas.
TTM EPS: 68.63
TTM PE: 11.95
Sector PE: 23.74
Book Value Per Share: 327.24
P/B: 2.51
Face Value: 10
Mkt Cap (Rs. Cr.): 8,097
Dividend Yield: 2.81
Some Positives:
Company with No Debt
Increasing Revenue every quarter for the past 2 quarters
Book Value per share Improving for last 2 years
Company with Zero Promoter Pledge
Current price is less than the intrinsic value
Company is expected to give good quarter
Company has been maintaining a healthy dividend payout of 38.80%
Good time to consider, as stock is not in overbought zone
Some Negatives:
Inefficient use of capital to generate profits - RoCE declining in the last 2 years
Decline in Net Profit with falling Profit Margin (QoQ)
Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
My Opinion: Chart pattern looks promising for 50% return in medium to long term(If you are planning for long-term investment keep adding on dips till 770 and keep a stop loss at 650). In short term too, target of 840-850 is achievable. Please analyze chart on shorter time-frame before you buy.
NOT A RECOMMENDATION. JUST FOR EDUCATION PURPOSE. Thanks
