In This Article:
Mahanagar Gas Limited (NSE:MGL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MGL, it is a financially-sound , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Mahanagar Gas here.
Flawless balance sheet with proven track record and pays a dividend
MGL delivered a satisfying double-digit returns of 23% in the most recent year Not surprisingly, MGL outperformed its industry which returned 20%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. MGL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that MGL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at MGL’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. MGL has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
MGL is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
Next Steps:
For Mahanagar Gas, I’ve compiled three important aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for MGL’s future growth? Take a look at our free research report of analyst consensus for MGL’s outlook.
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Valuation: What is MGL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MGL is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MGL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.