MGL - Buy Opportunity Analysis

7 Apr 2022

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

8 Apr 2022

Catatan

08/04/2022: CMP 828. Expecting price to be 840-850 next week.

12 Apr 2022

Catatan

CMP 833

23 Apr 2022

Trading ditutup secara manual

Sorry for late update. High made of 870 for that trade previously mentioned.

3 Agu 2023

Catatan

CMP 1120

9 Jan

Catatan

LONG term view intact. CMP 1200