Rs 16/Share Dividend: Mahanagar Gas Sets Record Date For 160% Payout

Mid-cap company Mahanagar Gas operates in the energy industry. On May 8, 1995, Mahanagar Gas Limited (MGL), one of India's top natural gas distribution companies, was established. The company has declared a final dividend of 160% and for the purpose of the same record date has been finalized.

MGL Dividend

"Pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from Thursday, August 17, 2023 to Thursday, August 24, 2023 (both days inclusive) for the purpose of 28th Annual General Meeting and payment of dividend for the Financial Year 2022-23.

The Record Date ("cut-off") for the purpose of 28th AGM and ascertaining eligibility of Final Dividend for the Financial Year 2022-2023 is Wednesday, August 16, 2023. The Final Dividend of Rs. 16/- i.e. 160% per equity share of Rs. 10/- each fully paid up, for the financial year ended March 31, 2023, if approved at the said AGM, will be paid within 30 days of its approval, to those Members whose names appears in the Register of Members of the Company and/ or Register of Beneficial Owners maintained by the Depositories, as on the Record Date ("cut-off"), i.e. Wednesday, August 16, 2023," said Mahanagar Gas in a stock exchange filing.

Mahanagar Gas has announced an equity dividend of 260.00% at a face value of Rs 10, or Rs 26 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 1116.65 is 2.32%. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, Mahanagar Gas Ltd. has issued 15 dividends since September 15, 2016.

MGL Financials

The leading natural gas distributor reported total revenue of Rs 1,610.5 crore for the quarter ended in March, a drop of 3.64 % from Rs 1,671.39 crore in the same quarter of FY22. EBITDA for the firm was Rs 389.6 crore, up 52.16 percent from Rs 256.10 crore during the same period the previous year. Mahanagar Gas's Q4FY23 net profit jumped by 104% to Rs 268 crore from Rs 131.8 Cr in the same quarter of FY22. The state-run company declared a net profit of Rs 790 crore for the entire fiscal 2022-2023, which is a rise of 32% over the Rs 596 crore registered in FY22. The company is yet to declare its Q1FY24 results.

"Pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, August 03, 2023, inter-alia to consider and approve the Unaudited Financial Results for the quarter ended June 30, 2023," said MGL in a stock exchange filing.

MGL Share Price

On Tuesday, the shares of Mahanagar Gas opened on the BSE at Rs 1122 apiece and while writing this copy the scrip was trading at Rs 1117 apiece with a downside gap of 0.09% over the previous close of Rs 1118. The stock made a 52-week-high of Rs 1,133.55 on (12/07/2023) and a 52-week-low of Rs 749.20 on (29/07/2022). During Q1FY24, the company reported promoter shareholding of 32.50%, FIIs stake of 32.38%, DIIs stake of 15.15%, Govt stake of 10.00% and public stake of 9.96%.

MGL Share Price Target

Deven Mehata, Equity Research Analyst-Choice Broking said, " MGL has recovered from an important support level of 1085. The 20-day Exponential Moving Average (EMA) at 1085 also aligns with the important support level. The Relative Strength Index (RSI) indicator is showing strength, as it is currently trading around 65 levels. Additionally, MGL has overcome significant resistance at 1100 levels."

"Looking ahead, if MGL crosses the level of 1135, which is also a recent high for the stock, it could be seen as a bullish signal. This indicates that the stock may have the potential to rise even higher, with the next likely target being beyond the recent high. Furthermore, MGL is trading above all the important moving averages, such as the 20-day, 50-day and 200-day moving averages. In conclusion, the technical analysis of MGL points towards a potentially bullish trend. With a medium-term target price of 1200, MGL can be purchased at the current market price of 1123.70 it can also be bought near 1100 levels. If the price closes below 1085, our analysis will be considered as being invalid," said Deven Mehata.

Disclaimer

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