PSU stock is one of India’s leading natural gas distribution companies for domestic, industrial, and commercial use jumped 2 percent in the day’s trade following Rs. 385 Investment in an EV Battery Manufacturing Company.
Price Action
With a market capitalization of Rs. 18,274 Crores, the shares of Mahanagar Gas Limited were trading at Rs. 1,850 per equity share, up 1.5 percent from its previous day’s close price of Rs. 1,824.55.
What Happened
Mahanagar Gas Limited has entered into an indicative and non-binding term sheet with International Battery Company, Inc. for a proposed investment not exceeding Rs. 385 Crores., in one or more tranches in International Battery Company Private Limited Which is a proposed Joint Venture Company by subscribing to the equity shares or other, for a stake not less than 40 percent in it.
International Battery Company, Inc. (IBC) specializes in the design, development, and production of advanced battery technologies. The company typically focuses on lithium-ion batteries for various applications, including energy storage systems, electric vehicles (EVs), and other industrial uses.
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About the Company
Mahanagar Gas Limited is a natural gas distribution company, one of the leading distributors of CNG(Compressed Natural Gas) and PNG(Piped Natural Gas) in Mumbai, Urban Thane, its adjoining areas, and Raigad.
It offers PNG to various industries, including metal, pharmaceuticals, food and beverages, printing and dyeing, oil mills, power generation, and air conditioning. It supplies CNG to Brihanmumbai Electricity Supply and Transport/Thane Municipal Transport/Maharashtra State Road Transport Corporation/Navi Mumbai Municipal Transport buses, light commercial vehicles (LCVs)/ tempos/trucks/private buses.
The physical infrastructure of MGL Limited has a total of 347 CNG Stations, 6,369 Kms of PE Pipeline length, and 599 Km of Stell pipeline Length. It has a strong customer base with ~24.90 Lakh PNG Connections, ~9.96 Lakh of CNG Vehicles, and 4,769 industrial and commercial (I&C) Customers.
Financials and Ratios
Its revenue from operations grew by 3.37 percent from Rs. 1,538 Crores in Q1FY24 to Rs. 1,590 Crores in Q1FY25, accompanied by profits of Rs. 368 Crores to Rs. 285 Crores.
In terms of Return ratios, it has delivered a return on equity (ROE) of 27.8 percent and a return on capital employed (ROCE) of 36.6 percent. It has maintained a debt-to-equity ratio of 0.03.
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Written by: Bharath K.S
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