A debt free and high margin with good r-o-e company just listed 3 years back. Incorporated in 1995 MGL is a city Gas distribution company. Able to grow revenue from 1400 Cr & Profit from 300 Cr just during 2012 to today revenue and profits of around 3000 Cr and 600 Cr respectively. A company with good growth. Recommended during IPO many people still hold and can hold it for long term wealth. Distributes around 35% profits in dividends, expect whole investment refund in the next 10 years.
Current Year results are Covid-19 affected as revenue & profits has fallen by -28% & -22% respectively shows low demand during LockDown, but they are still doing better. Low Mobility due to lockdown affects their overall sales. As movement were muted during lockdown we see this low sales affect due to Low Mobility in PNG. Gas Distribution shows good growth.
This year 2022 We may see sales the damage minimize by 12% and Profits could be flat. As Mobility will increase again we may again see the lifetime high sales around 2023 or may be later half this year.
New buying again could be done as well as 1st time buyers could be active near 850 and can hold it for long term wealth. Those just bought few months back near 800 our this year target was 1200. Can Book some 5% to even 10% profits in the range of 1200-1400.
Gail is the promoter of this company. 18% holding with MF & Insurance companies along with 29% FII.
LIC just added 50000 more in their existing holding in the month of Oct to increase the stake to 5%.