Mahanagar Gas Limited (MGL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-34.1%

₹686.03

vs ₹1,041.00 price

Levered DCF

₹704.70

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

—

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	10.89×	13.16×	10.65×	12.3×	12.89×	18.64×	10.19×	18.58×
P/B	1.43×	2.33×	2.67×	2.35×	2.14×	3.57×	2.74×	4.23×
P/S	1.11×	1.89×	2.18×	1.55×	2.18×	5.41×	2.74×	3.66×
EV / EBITDA	5.92×	7.81×	6.76×	7.49×	7.64×	11.43×	7.06×	10.51×
Gross margin	24.6%	31.1%	38.3%	26.1%	36.5%	58.8%	78.1%	71.7%
Operating margin	12.7%	16.9%	25.2%	15.3%	20.9%	36.0%	30.3%	27.6%
Net margin	10.2%	14.4%	20.5%	12.6%	16.9%	29.0%	26.9%	19.7%
Current ratio	0.94×	1.04×	1.12×	1.29×	1.39×	1.58×	1.59×	1.43×
Debt / equity	0.03×	0.03×	0.03×	0.03×	0.03×	0.02×	0.02×	0×
Interest coverage	50.06×	87.03×	118.59×	102.5×	98.19×	106.96×	137.15×	2,369.57×
Dividend yield	3.2%	2.2%	2.0%	2.6%	3.7%	2.8%	2.7%	2.3%
Payout ratio	35.2%	28.5%	21.5%	31.9%	47.1%	52.0%	27.5%	42.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.1%	17.7%	25.0%	19.1%	16.6%	19.2%	26.9%	22.8%
Return on invested capital	10.9%	14.5%	20.6%	16.0%	13.9%	16.3%	22.7%	19.1%
Return on assets	9.4%	12.6%	17.4%	13.1%	11.4%	13.5%	19.2%	15.9%
Free cash flow yield	1.1%	1.6%	6.1%	2.6%	3.3%	4.0%	6.8%	3.2%
Earnings yield	9.2%	7.6%	9.4%	8.1%	7.8%	5.4%	9.8%	5.4%
Enterprise value	₹92.7B	₹135.6B	₹136.9B	₹97.1B	₹77.2B	₹115.9B	₹81.4B	₹101.2B
Net debt / EBITDA	0.07×	-0.08×	0.01×	-0×	0.02×	0.05×	0.04×	-0.03×
Cash conversion cycle (days)	-4	-9	-7	-0	-14	-26	-50	-39