Mahanagar Gas Ltd (MGL) stock opened its trading hour today at Rs 995.80 and currently trades at Rs 916.65. The stock is bearish with a steep downfall of around 7 percent as compared to the previous closing price of Rs 983.45. Keeping a purview of six months, the stock has been able to deliver returns of around 14 percent to its stakeholders.
Such a sharp fall in the stock price is witnessed after a delay caused by the Cabinet with respect to the decision pertaining to the domestic gas prices. The prices have been kept on hold as the government is still considering recommendations of the ‘Kirit Parikh committee’ on fair pricing of natural gas.
Apart from MGL, some other gas stocks that are down today include Indraprastha Gas Ltd and Gujarat Gas with a downfall of 3 and 1 percent respectively.
Mahanagar Gas Ltd is an India-based natural gas company distributing natural gas through the City Gas Distribution network of pipelines. It distributes compressed natural gas (CNG) for use in vehicles and piped natural gas (PNG) for domestic household, commercial and industrial use.
It operates under the business segment of the sale of natural gas with business operations principally carried out in India. The company generates revenue by way of selling natural gas out of which the sale of CNG accounts for majority of the total gas sales revenue.
Digging into the financials, the revenues and net profits of the company have improved on a QoQ basis with revenues moving up from Rs 1,717 crores in Q2 to 1,838 crores in Q3 and net profits showing a movement from Rs 164 crores in Q2 to Rs 172 crores in Q3.
The profitability ratios of the company exhibited a different scenario with decreasing percentages in the latest financial year. Starting off with the ROE figures which moved down from 20.03 percent in FY20-21 to 17.48 percent in FY21-22. In addition to that, the ROCE figures reported showed a downfall from 27.19 percent in FY20-21 to 23.83 percent in FY21-22.
Written by Amit Madnani
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