MAHANAGAR GAS LTD. Fair Value
MGL · Oil, Gas & Consumable Fuels · Current price ₹1,077
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹669 | 13% ROE fading to 13% over ~10 yrs, on ₹651 book |
| Relative P/E | ₹1,143 | EPS × 13.3 peer-median P/E |
| Graham floor | ₹1,121 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,313 | Street consensus 12-month target price |
Is MAHANAGAR GAS LTD. undervalued?
DocStoX estimates the fair value of MAHANAGAR GAS LTD. at ₹964 per share, versus the current market price of ₹1,077. That puts the stock about -10.5% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹669), Relative P/E (₹1,143), Graham floor (₹1,121), Analyst target (₹1,313). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹669 (bear) to ₹964 (base) to ₹1,313 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on MAHANAGAR GAS LTD.
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.