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Mahanagar Gas Limited (MGL) Fair Value & Analysis

Utilities · IN · Market cap ₹113B

MG Mahanagar Gas Limited MGL · NSE
Price₹1,124
Fair Value₹1,387
Upside+23.5%
Quality52/100
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Expensive Growth
Solidly profitable · 10.2% net margin
Low debt · generates free cash flow
2.58% dividend yield
Ranks above peers (10/14)
Moderate moat 55/100
Evidence: High Range ₹602.53 – ₹1,835 Share as image

Fair value as of: Aug 8, 2026

From 26 valuation models · updated 3 days ago

Fair value updated Aug 8, 2026, revised from ₹1,466 to ₹1,387 (−5.4%) since Jul 3, 2026. Share price −0.2% over the past month.

A solid business, screening 23% undervalued on our models.

What matters now

  • The model range is unusually wide (₹602.53 to ₹1,835). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹1,902 ₹614.60 Fair Value ₹1,387 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ₹614.60 – ₹1,902 · fair‑value band ₹602.53 – ₹1,835 · the ₹1,124 price screens below the ₹1,387 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Mahanagar Gas Limited (MGL) currently trades at ₹1,124, while our model-based Fair Value estimate is ₹1,387, implying the stock looks roughly 23.5% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Mahanagar Gas Limited generated revenue of ₹82.5B at a net margin of 10.2%. Revenue grew 4.5% year over year. It earns a return on equity of 13.6%. Net debt stands at ₹1.1B. Fundamentals as of Aug 8, 2026

Our scenario range runs from ₹602.53 (bear case) to ₹1,835 (bull case); at ₹1,124, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 25% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -19% fair-value upside, at 23%, MGL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹136.63 ₹287.01 ₹525.78 80
Residual Income ₹620.15 ₹763.31 ₹1,745 76
Rev-Margin DCF ₹728.03 ₹1,534 ₹2,666 74
All 26 models by family
DCF Models
FCF DCF ₹140.81 ₹266.83 ₹585.91 38
Owner Earnings ₹246.67 ₹514.41 ₹1,031 31
5Y Revenue Exit ₹728.03 ₹1,587 ₹2,855 39
5Y EBITDA Exit ₹776.26 ₹1,695 ₹2,943 41
5Y P/E Exit ₹804.13 ₹1,757 ₹2,941 38
10Y Revenue Exit ₹505.70 ₹1,273 ₹2,651 36
10Y EBITDA Exit ₹575.16 ₹1,356 ₹2,730 37
10Y P/E Exit ₹594.26 ₹1,403 ₹2,728 35
Earnings-Based
Graham-Dodd ₹579.07 ₹3,421 ₹4,764 54
Lynch FV ₹971.04 ₹1,387 ₹1,803 50
PEG = 1.0 ₹971.04 ₹1,387 ₹1,803 46
EPV ₹720.03 ₹841.39 ₹947.57 59
Dividend Discount
Gordon GGM ₹275.58 ₹572.99 ₹908.99 70
DDM Multi-Stage ₹275.58 ₹483.16 ₹601.37 61
Multiples
P/E Multiple ₹1,150 ₹1,533 ₹1,916 63
P/S Multiple ₹1,086 ₹1,448 ₹1,810 58
P/B Multiple ₹878.46 ₹1,171 ₹1,464 55
EV/EBIT ₹1,187 ₹1,585 ₹1,984 53
EV/EBITDA ₹1,100 ₹1,469 ₹1,838 54
EV/Revenue ₹958.52 ₹1,373 ₹1,787 43
Asset-Based
NCAV (Graham) ₹325.36 ₹435.98 ₹650.71 50
Growth DCF
Growth DCF ₹136.63 ₹287.01 ₹525.78 80
Rev-Margin DCF ₹728.03 ₹1,534 ₹2,666 74
Economic Profit
Residual Income ₹620.15 ₹763.31 ₹1,745 76
ROIC Compounder ₹771.12 ₹1,122 ₹1,423 72
Growth Earnings
Growth-Adj P/E ₹1,326 ₹1,895 ₹2,463 68

Widest divergence: Growth Earnings (₹1,895) versus Growth DCF (₹287.01). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹82.5B
Revenue growth (YoY) +4.5%
Net margin 10.2%
Return on equity 13.6%
Free cash flow ₹1.0B FY2026
P/E ratio 13.4
More key figures
Operating margin 7.5%
EPS (TTM) ₹85.17
Dividend yield 2.6%
EPS growth (YoY) -47.4%
Net debt ₹1.1B FY2026

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 53 · Market factors (momentum, volatility) 45

Profitability 54
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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, …

Full company description

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 to transport sector. In addition, it engages in sale of pipes and fittings required for construction of pipeline infrastructure. Further, the company supplies liquefied natural gas to heavy motor vehicles. The company operates 385 CNG filling stations with 2,399 dispensing points; 652 kilometers of steel pipeline; and 6887 kilometers of poly-ethylene pipeline. Mahanagar Gas Limited was incorporated in 1995 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Mahanagar Gas Limited reported revenue of ₹82.5B in FY2026 versus ₹35.4B in FY2022, a compound +23.6%/yr. Reported net income was ₹8.4B in FY2026, compounding +9.0%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹82.5B
Latest YoY
+14.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+31.0%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.7%
Revenue +23.6%/yr
FY22 ₹35.4B
FY23 ₹62.8B
FY24 ₹62.7B
FY25 ₹72.3B
FY26 ₹82.5B
Net income +9.0%/yr
FY22 ₹6.0B
FY23 ₹7.9B
FY24 ₹12.8B
FY25 ₹10.4B
FY26 ₹8.4B
Character of growth · EPS growth decomposed (2015-2026) +13.6 % p.a.
Revenue per share +15.0 pp

of which total revenue +15.0 pp · buybacks/dilution +0.0 pp

EBIT margin −2.7 pp
Tax rate +1.4 pp
Residual (interest, one-offs) −0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Mahanagar Gas Limited Fair Value". https://www.fairvalue-calculator.com/stock/MGL

Peer Group

Utilities - Regulated Gas · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Above median
Fair Value upside +24% · Above median
Return on equity (TTM) 14% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 7% · Below median
Revenue growth 5% · Top 25%
Dividend yield (TTM) 2.6% · Below median
Debt / equity 0.03× · Lower than 75% of peers

Valuation Multiples vs Utilities - Regulated Gas median · lower = cheaper

P/E (TTM) 13.4× · Cheaper than median
P/B 1.76× · Pricier than median
P/S (TTM) 1.37× · Pricier than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 7.8× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 65 · sector 22
FUTURE 23 · sector 0
PAST 55 · sector 34
HEALTH 99 · sector 85
DIVIDEND 52 · sector 67

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Gas stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Naturgy Energy Group NTGY €28.84 €35.80 +24%
Atmos Energy Corporation ATO $177.68 $85.67 -52%
NiSource Inc NI $47.07 $28.59 -39%
Uniper SE UN0 €42.80 €49.13 +15%
The Hong Kong and China Gas Company 0003 HK$7.03 HK$5.08 -28%
Italgas S.p.A IG €9.98 €8.11 -19%
GAIL (India) Limited GAIL ₹171.71 ₹147.74 -14%
Adani Total Gas Limited ATGL ₹723.90 ₹101.36 -86%
ENN Natural Gas Co 600803 ¥17.30 ¥25.71 +49%
UGI Corporation UGI $35.84 $27.13 -24%

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Frequently asked questions

Is Mahanagar Gas Limited (MGL) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ₹1,387 versus a price of ₹1,124, about +23% (undervalued).
What is the fair value of MGL?
Our model-based fair value for Mahanagar Gas Limited is ₹1,387 (as of Aug 8, 2026), built from audited fundamentals. The current price is ₹1,124.
What is the quality score of MGL?
Mahanagar Gas Limited has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Mahanagar Gas Limited (MGL)?
Mahanagar Gas Limited reported trailing-twelve-month revenue of about ₹82.5B (latest available figure, as of Aug 8, 2026).
What is the net profit margin of MGL?
The net profit margin of Mahanagar Gas Limited is about 10.2%, meaning it keeps roughly 10.2% of revenue as net income. Based on the latest reported figures.
Does Mahanagar Gas Limited pay a dividend?
Mahanagar Gas Limited currently shows a dividend yield of about 2.58% relative to its recent price (as of Aug 8, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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