Mahanagar GasNSE:MGL -0.24%98 Return-on-Tangible-Equity is 8.63% as of Mar. 2026, which is 60% below its 10-year median of 21.33. GuruFocus rates NSE:MGL with a GF Score™ of 98/100 and a GF Value™ of ₹1,560.94 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 498 Utilities - Regulated companies, Mahanagar Gas ranks better than 64.46% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Mahanagar Gas's annualized net income for the quarter that ended in Mar. 2026 was ₹5,198 Mil. Mahanagar Gas's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹60,205 Mil. Therefore, Mahanagar Gas's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.63%.
The historical rank and industry rank for Mahanagar Gas's Return-on-Tangible-Equity or its related term are showing as below:
NSE:MGL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.61 Med: 21.33 Max: 29.71
Current: 14.61
During the past 13 years, Mahanagar Gas's highest Return-on-Tangible-Equity was 29.71%. The lowest was 14.61%. And the median was 21.33%.
NSE:MGL's Return-on-Tangible-Equity is ranked better than 64.46% of 498
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs NSE:MGL: 14.61
Mahanagar Gas (NSE:MGL) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Mahanagar Gas Return-on-Tangible-Equity Related Terms
Mahanagar Gas Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Mahanagar Gas's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:MGL vs ATO, NI, UGI: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Gas subindustry, Mahanagar Gas's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mahanagar Gas Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Mahanagar Gas's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Mahanagar Gas's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.63% mean?
Mahanagar Gas (NSE:MGL) has a Return-on-Tangible-Equity of 8.63% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mahanagar Gas and its competitors. This is 60% below median its historical median of 21.33. Over the past decade, Mahanagar Gas' Return-on-Tangible-Equity has ranged from 14.61 to 29.71. According to the industry distribution chart, Mahanagar Gas ranks #177 out of 498 companies in the Utilities - Regulated industry, placing it in the top 35.5%.
Is Mahanagar Gas' Return-on-Tangible-Equity too high?
Mahanagar Gas' current Return-on-Tangible-Equity of 8.63% is 60% below median its 10-year median of 21.33. Over the past 10 years, this metric has ranged from a low of 14.61 to a high of 29.71. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. Mahanagar Gas' value of 8.63% is 20.9% below this industry median. Based on the distribution chart, Mahanagar Gas ranks #177 out of 498 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Mahanagar Gas has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mahanagar Gas' Return-on-Tangible-Equity compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Mahanagar Gas ranks #177 out of 498 companies for Return-on-Tangible-Equity. This puts Mahanagar Gas in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.91. Mahanagar Gas' value of 8.63% is 20.9% below this benchmark. Historically, Mahanagar Gas' own Return-on-Tangible-Equity has ranged from 14.61 to 29.71 over the past decade. While the company's 10-year median is 21.33 vs. the industry median of 10.91, Mahanagar Gas has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mahanagar Gas's current Return-on-Tangible-Equity of 8.63% is 20.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Mahanagar Gas and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahanagar Gas's current Return-on-Tangible-Equity is 8.63%, which is 60% below median its own 10-year median of 21.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mahanagar Gas stock overvalued right now?
Based on GuruFocus' analysis, Mahanagar Gas (NSE:MGL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,560.94, compared to a current price of ₹1,125.90 — trading 27.9% below its estimated fair value. The current Return-on-Tangible-Equity is 8.63%, which is 60% below median its 10-year median of 21.33 and 20.9% below the Utilities - Regulated industry median of 10.91. Mahanagar Gas' overall GF Score™ is 98/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Mahanagar Gas (NSE:MGL), the current Return-on-Tangible-Equity is 8.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mahanagar Gas (NSE:MGL) Overvalued in 2026?
Based on GuruFocus' analysis, Mahanagar Gas stock appears to be undervalued.
The current stock price of ₹1,125.90 is trading 27.9% below its estimated GF Value™ of ₹1,560.94.
GuruFocus considers Mahanagar Gas to be Modestly Undervalued.
Key valuation signals for NSE:MGL:
Return-on-Tangible-Equity: 8.63% (60% below median its 10-year median of 21.33)
GF Value™: ₹1,560.94 vs. price of ₹1,125.90 (27.9% below fair value)
Industry Position: 20.9% below the Utilities - Regulated median (#177 of 498)
No single metric tells the full story. See the NSE:MGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mahanagar Gas Ltd is an India-based natural gas distribution company. It distributes natural gas through the City Gas Distribution network of pipelines. It distributes compressed natural gas (CNG) for use in vehicles and piped natural gas (PNG) for domestic household, commercial, and industrial use, and to transport sector customers as well. The company operates under the business segment of the sale of natural gas. Its business operations are principally carried out in India. The company generates revenue by selling natural gas, of which the sale of CNG accounts majorly for the total gas sales revenue.
98GF Score
Get the complete analysis for NSE:MGL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:MGL has been successfully added to your 
