⚠ 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 | 59,852 Cr. | Current Price | 544 ₹ | High / Low | 798 ₹ |
| Stock P/E | 94.9 | Book Value | 40.8 ₹ | Dividend Yield | 0.05 % | ROCE | 17.4 % |
| ROE | 16.7 % | Face Value | 1.00 ₹ | DMA 50 | 565 ₹ | DMA 200 | 617 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.02 % | PAT Qtr | 157 Cr. | PAT Prev Qtr | 162 Cr. |
| RSI | 33.8 | MACD | -15.0 | Volume | 5,43,107 | Avg Vol 1Wk | 5,63,199 |
| Low price | 507 ₹ | High price | 798 ₹ | PEG Ratio | 10.9 | Debt to equity | 0.45 |
| 52w Index | 12.8 % | Qtr Profit Var | 9.59 % | EPS | 5.73 ₹ | Industry PE | 19.2 |
📊 Core Financials
- Revenue & Profitability: PAT declined from 162 Cr. to 157 Cr. (–9.59% variance), showing mild earnings pressure.
- Margins: ROE at 16.7% and ROCE at 17.4% are decent, reflecting moderate efficiency.
- Debt: Debt-to-equity ratio of 0.45 indicates manageable leverage.
- Cash Flow: Profitability supports cash generation, but earnings growth remains weak.
💹 Valuation Indicators
- P/E Ratio: 94.9 vs. industry average of 19.2 — extremely overvalued.
- P/B Ratio: Current price (₹544) vs. book value (₹40.8) → ~13.3x, premium valuation.
- PEG Ratio: 10.9, suggesting growth is priced at an excessive premium.
- Intrinsic Value: Valuation appears stretched given modest profitability.
🏢 Business Model & Competitive Advantage
- Adani Total Gas (ATGL) operates in city gas distribution, focusing on PNG (piped natural gas) and CNG (compressed natural gas).
- Competitive advantage lies in scale, government support for clean energy, and integration with Adani Group infrastructure.
📈 Technicals & Entry Zone
- DMA 50 (₹565) and DMA 200 (₹617) are above current price, showing weakness.
- RSI at 33.8 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive near ₹500–530 for accumulation.
- Long-Term Holding: Risky at current valuations; suitable only if earnings growth improves.
✅ Positive
- Decent ROE (16.7%) and ROCE (17.4%).
- Moderate debt-to-equity ratio (0.45).
- DII holdings increased (+0.02%), showing slight domestic support.
⚠️ Limitation
- Extremely high P/E ratio (94.9) compared to industry average (19.2).
- PEG ratio (10.9) indicates growth is overpriced.
- Dividend yield of 0.05% offers negligible shareholder return.
📉 Company Negative News
- Quarterly PAT declined (–9.59%), showing earnings pressure.
- FII holdings decreased (–0.07%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, indicating technical weakness.
📈 Company Positive News
- EPS at ₹5.73 reflects earnings base despite volatility.
- DII holdings increased slightly (+0.02%), showing domestic support.
🏭 Industry
- City gas distribution sector benefits from government push for clean energy and rising demand for natural gas.
- Industry average P/E (19.2) highlights ATGL’s extreme overvaluation.
🔎 Conclusion
- Adani Total Gas shows moderate efficiency and sectoral strength but faces weak earnings growth and stretched valuations.
- High P/E and PEG ratios make current levels risky.
- Recommendation: Accumulate only on dips near ₹500–530. Long-term holding viable only if profitability improves and valuations normalize.