This Small Cap Natural Gas Sector Stock Is Paying 155% Dividend, Will Trade Ex-Dividend Next Week

Mahanagar Gas is a small cap Gas Distribution company having a market capitalization of Rs 7,756 crore. The company's key product and Revenue Segments include Gas Natural, Other Operating Revenue and Pipes & Fittings.

The company for the quarter ended 31 March 2022, has reported a Standalone Total Income of Rs 1,210.30 Crore, up 5.73 % from last quarter's Total Income of Rs 1,144.72 Crore and up 51.06 % from last year's same quarter Total Income of Rs 801.21 Crore. The company has reported a net profit after tax of Rs 131.80 Crore in the latest quarter.

155% Final Dividend

Mahanagar Gas declared a final dividend of Rs 15.50 per equity share i.e. 155 per cent having a face value of Rs 10 each for the financial year ending March 31, 2022. The declared dividend will trade ex-dividend coming week on 11th August 2022. The company has not announced the record date for the same.
 
 On May 10, 2022, Mahanagar Gas Limited in its regulatory filing to NSE & BSE, said, "Approved Final Dividend of Rs. 15.50 per equity share having face value of Rs. 10/- each (i.e. 155%) for the Financial Year ended March 31, 2022, subject to the approval of shareholders at the ensuing Annual General Meeting."

Company's Dividend History

The company maintains a good track record of dividend payouts and has declared 14 dividends in the past 6 years. It has a good history of dividend payout and has declared constant dividends. Since August 2016, it has declared 7 final dividends, 6 Interim dividends, and 1 special dividend. The first dividend was declared on August 22, 2016. For the year 2022, the company has declared an equity dividend of 250.00% amounting to Rs 25 per share. This includes a Final dividend of 155% and an Interim dividend of 95%. 

 

Stock Outlook

Friday, 05 August 2022, the shares of the company closed at Rs 785.20 apiece on NSE after a falling 0.43% from its previous close. It was opened at Rs 782.50 apiece, while the previous close was Rs 780.35 apiece. Currently, the stock is trading at Rs 119.40 above the 52-week low level of Rs 665.80 recorded in June 2022. The 52-week high level of the stock is Rs 1206.30, recorded last year in September.

 Last week, the shares of the company surged by nearly 4.18%. In the past 1 month, it gained 2.35%, and 2.47% in the past 3 months, respectively. Over the past 1 year, the shares slid down around 33.26% and roughly 2.51% in the past 3 years, respectively. In the past 5 years, it has given a negative return of 23.48%.
 
The ROE is 16.59%. TTM EPS is Rs 60.43. PE ratio is 12.99 and the PB ratio is 2.16. The Dividend yield is 3.18% and the face value is Rs 10.
 

About - Mahanagar Gas Limited

Mahanagar Gas Limited, (MGL) one of India's leading Natural Gas Distribution Companies was incorporated on 8th May 1995. GAIL (India) Limited (Maharatna Company of Govt. of India) is the promoter of MGL. MGL has the distinction of pioneering Natural Gas distribution network in Mumbai, its adjoining areas and the Raigad district. Over 1.8 million domestic customers are connected through company's wide network of over 6285 km. which comprises carbon steel (CS) and polyethylene (PE) pipelines. Domestic PNG is used for various purposes like cooking and water heating. It is also widely used by Hospitals, Nursing Homes, Hotels, Flight kitchens, Restaurants, places of Worship etc. PNG satisfies most of the requirements for fuel across all segments, being efficient, non-polluting and relatively economical. 
 

Disclaimer

The stock has been sourced from NSE & BSE. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.