Mahanagar GasNSE:MGL -1.79%97 ROE % is 8.09% as of Mar. 2026, which is 62% below its 10-year median of 21.25. GuruFocus rates NSE:MGL with a GF Score™ of 97/100 and a GF Value™ of ₹1,552.96 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 503 Utilities - Regulated companies, Mahanagar Gas ranks better than 75.75% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Mahanagar Gas's annualized net income for the quarter that ended in Mar. 2026 was ₹5,198 Mil. Mahanagar Gas's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹64,276 Mil. Therefore, Mahanagar Gas's annualized ROE % for the quarter that ended in Mar. 2026 was 8.09%.
The historical rank and industry rank for Mahanagar Gas's ROE % or its related term are showing as below:
NSE:MGL'
s ROE % Range Over the Past 10 Years
Min: 13.61 Med: 21.25 Max: 29.66
Current: 13.61
During the past 13 years, Mahanagar Gas's highest ROE % was 29.66%. The lowest was 13.61%. And the median was 21.25%.
NSE:MGL's ROE % is ranked better than 75.75% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs NSE:MGL: 13.61
Mahanagar Gas (NSE:MGL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Mahanagar Gas ROE % Related Terms
Mahanagar Gas ROE % Historical Data
* Premium members only.
The historical data trend for Mahanagar Gas's ROE % 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.
For the Utilities - Regulated Gas subindustry, Mahanagar Gas's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Mahanagar Gas's ROE % distribution charts can be found below:
* The bar in red indicates where Mahanagar Gas's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Mahanagar Gas (NSE:MGL) has a ROE % of 8.09% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mahanagar Gas and its competitors. This is 62% below median its historical median of 21.25. Over the past decade, Mahanagar Gas' ROE % has ranged from 13.61 to 29.66. According to the industry distribution chart, Mahanagar Gas ranks #122 out of 503 companies in the Utilities - Regulated industry, placing it in the top 24.3%.
Is Mahanagar Gas' ROE % too high?
Mahanagar Gas' current ROE % of 8.09% is 62% below median its 10-year median of 21.25. Over the past 10 years, this metric has ranged from a low of 13.61 to a high of 29.66. The Utilities - Regulated industry median ROE % is 8.62. Mahanagar Gas' value of 8.09% is 6.1% below this industry median. Based on the distribution chart, Mahanagar Gas ranks #122 out of 503 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Mahanagar Gas has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mahanagar Gas' ROE % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Mahanagar Gas ranks #122 out of 503 companies for ROE %. This places Mahanagar Gas in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 8.62. Mahanagar Gas' value of 8.09% is 6.1% below this benchmark. Historically, Mahanagar Gas' own ROE % has ranged from 13.61 to 29.66 over the past decade. While the company's 10-year median is 21.25 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mahanagar Gas's current ROE % of 8.09% is 6.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Mahanagar Gas and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mahanagar Gas's current ROE % is 8.09%, which is 62% below median its own 10-year median of 21.25. 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 ₹1,552.96, compared to a current price of ₹1,174.60 — trading 24.4% below its estimated fair value. The current ROE % is 8.09%, which is 62% below median its 10-year median of 21.25 and 6.1% below the Utilities - Regulated industry median of 8.62. Mahanagar Gas' overall GF Score™ is 97/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Mahanagar Gas (NSE:MGL), the current ROE % is 8.09% 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 ₹1,174.60 is trading 24.4% below its estimated GF Value™ of ₹1,552.96.
GuruFocus considers Mahanagar Gas to be Modestly Undervalued.
Key valuation signals for NSE:MGL:
ROE %: 8.09% (62% below median its 10-year median of 21.25)
GF Value™: ₹1,552.96 vs. price of ₹1,174.60 (24.4% below fair value)
Industry Position: 6.1% below the Utilities - Regulated median (#122 of 503)
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.
97GF Score
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