Incredible results: This Low PE, High ROE energy stock soars over 9 per cent; declares dividend!

The stock is up by 25 per cent in just 6 months and over 45 per cent in 1 year.  

Today, one of the Top Gainers on BSE, shares of Mahanagar Gas Ltd soared 9.83 per cent to a fresh new 52-week high of Rs 1,097.50 per share. At the closing bell, shares of the company were in green, up 7.49 per cent to Rs 1,074.20 per share. 

The reason behind the rise in the stock price is due to the incredible Quarterly Results and annual results reported by the company. In Q4FY23, net sales rose by 48.11 per cent and net profit skyrocketed by 104 per cent over Q4FY22. The net sales rose by 77 per cent and net profit rose by 32.33 per cent in FY23 over FY22.  

Additionally, the company has approved final dividend of Rs 16 per equity share having face value of Rs 10 each (i.e.,160 per cent) for the financial year 2022-2023. This is in addition to the interim dividend of Rs 10 per equity share (i.e. 100%) paid to all the eligible equity shareholders, as declared by the Board of Directors at its meeting held on February 2, 2023.  

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Mahanagar Gas Ltd is engaged in the business of City gas distribution (CGD), presently supplying natural gas in the city of Mumbai including adjoining areas and the Raigad District in the state of Maharashtra. The company has a market cap of over 10,000 crore with a 1-year CAGR of 31 per cent.   

The stock has a PE of 12.49x, a ROE of 21 per cent and a ROCE of 27 per cent. The stock is up by 25 per cent in just 6 months and over 45 per cent in 1 year.  

Investors should keep an eye on this mid-cap energy company’s stock under the radar.