Rs 18 Dividend Attracts, But Profit Slows; Can BSE 500 Energy Stock Power Up After Q4 Results?

One of India's top natural gas distributors, Mahanagar Gas Limited (MGL), specializes in supplying the Mumbai metropolitan region with compressed natural gas (CNG) and piped natural gas (PNG). Mahanagar Gas's stock ended Wednesday's trading session on the BSE 2.37% higher at Rs 1410.35 a share, with a market value of Rs 13,931.12 Cr. The company's Q4 earnings and a substantial dividend of Rs 18 per share were the catalysts for the stock price surge.

Mahanagar Gas Dividend

The Board of Directors "recommended a Final Dividend of Rs. 18/-per equity share having face value of Rs. 10/each for the financial year 2024-25, subject to approval of shareholders of the Company. This is in addition to the Interim Dividend of Rs.12/-per equity share, as declared by the Board of Directors at its meeting held on January 28, 2025. Accordingly, the total dividend for the financial year 2024-25 will be Rs. 30/-per equity share having face value of Rs.10/-each," said MGL in a stock exchange filing.

Mahanagar Gas Q4 Results

In the quarter ending in March 2025, the firm recorded revenue from operations of Rs 1,864.85 Cr, up 19.00% YoY from Rs 1,567.05 Cr in the quarter ending in March 2024. Its EBIDTA margins were 20.29% compared to 25.13% in the same quarter last year, while its EBITDA was Rs 378.38 Cr in Q4FY25, down 3.91% YoY from Rs 393.78 Cr in Q4FY24. According to MGL, its net profit plunged by 4.83% YoY to Rs 252.19 Cr in the quarter under review from Rs 264.98 Cr in the same quarter of the previous fiscal year.

MGL's net profit for the entire FY25 dropped 18.94% to Rs 1,044.89 crore from Rs 1,289.07 the previous financial year. Revenue from operations increased 10.88% to Rs 6,923.68 crore in FY25 from Rs 6,244.53 crore in the fiscal year that ended in March 2024.

Mahanagar Gas Share Price Target

"Mahanagar Gas is moving sideways with slight bullish signs. It has strong support at ₹1370 and deeper support around ₹1325. The stock is facing resistance near ₹1440-1450. If it breaks out above this level, it could see a sharp move toward ₹1520. RSI is around 58, suggesting the stock still has room to move up. Right now, it's in a wait-and-watch zone; a breakout or dip toward ₹1370 will offer better trading opportunities," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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