⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ATGL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ATGL | Market Cap | 56,739 Cr. | Current Price | 516 ₹ | High / Low | 798 ₹ |
| Stock P/E | 90.0 | Book Value | 40.8 ₹ | Dividend Yield | 0.05 % | ROCE | 17.4 % |
| ROE | 16.7 % | Face Value | 1.00 ₹ | DMA 50 | 535 ₹ | DMA 200 | 592 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.02 % | PAT Qtr | 157 Cr. | PAT Prev Qtr | 162 Cr. |
| RSI | 47.9 | MACD | -0.24 | Volume | 32,08,679 | Avg Vol 1Wk | 2,47,35,094 |
| Low price | 454 ₹ | High price | 798 ₹ | PEG Ratio | 10.3 | Debt to equity | 0.45 |
| 52w Index | 18.1 % | Qtr Profit Var | 9.59 % | EPS | 5.73 ₹ | Industry PE | 14.4 |
📊 Core Financials
- Profitability: PAT declined from ₹162 Cr. to ₹157 Cr. (Qtr Profit Var: -9.59%)
- Margins: ROE at 16.7% and ROCE at 17.4% indicate decent efficiency
- Debt: Debt-to-equity ratio at 0.45 shows moderate leverage
- Cash Flow: EPS at ₹5.73 is modest relative to market cap
💰 Valuation Indicators
- P/E Ratio: 90.0 vs Industry PE of 14.4 → extremely overvalued
- P/B Ratio: Current Price ₹516 vs Book Value ₹40.8 → ~12.6x book
- PEG Ratio: 10.3 → growth priced at a steep premium
- Intrinsic Value: Current valuation far exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹56,739 Cr. reflects strong presence in city gas distribution
- Dividend Yield: 0.05% provides negligible shareholder return
- Competitive Advantage: Strategic positioning in natural gas distribution
- Overall Health: Efficiency metrics are decent, but profitability growth is weak and valuations stretched
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹450–480 if fundamentals improve
- Long-Term Holding: Risky at current valuations; suitable only if earnings scale up significantly
✅ Positive
- ROE (16.7%) and ROCE (17.4%) show decent efficiency
- Moderate debt-to-equity ratio (0.45)
- DII holding increased slightly (+0.02%)
⚠️ Limitation
- Extremely high P/E ratio (90.0)
- P/B ratio ~12.6x indicates expensive valuation
- PEG ratio (10.3) reflects steep premium pricing
📉 Company Negative News
- Quarterly PAT declined (-9.59%)
- FII holding decreased (-0.07%)
- Stock trading below DMA levels (50DMA ₹535, 200DMA ₹592)
📈 Company Positive News
- DII holding increased (+0.02%)
- Strong positioning in city gas distribution sector
🏭 Industry
- Industry PE: 14.4, far below ATGL’s PE
- Gas distribution sector benefits from rising energy demand and government push for cleaner fuels
🔎 Conclusion
ATGL operates in a promising sector with decent efficiency metrics, but profitability growth is weak and valuations are extremely stretched compared to industry peers.
Institutional interest is mixed, with FII holdings declining.
The stock is risky for long-term holding unless earnings improve significantly, with entry recommended only near ₹450–480 to balance risk and reward.