ATGL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | ATGL | Market Cap | 69,805 Cr. | Current Price | 635 ₹ | High / Low | 798 ₹ |
| Stock P/E | 110 | Book Value | 43.9 ₹ | Dividend Yield | 0.04 % | ROCE | 15.2 % |
| ROE | 14.1 % | Face Value | 1.00 ₹ | DMA 50 | 571 ₹ | DMA 200 | 589 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.01 % | PAT Qtr | 156 Cr. | PAT Prev Qtr | 157 Cr. |
| RSI | 62.1 | MACD | 29.6 | Volume | 36,92,910 | Avg Vol 1Wk | 75,93,605 |
| Low price | 454 ₹ | High price | 798 ₹ | PEG Ratio | 17.3 | Debt to equity | 0.47 |
| 52w Index | 52.6 % | Qtr Profit Var | 4.32 % | EPS | 5.79 ₹ | Industry PE | 21.5 |
📈 Positive
- Market capitalization of ₹69,805 Cr. ensures scale and liquidity in gas distribution.
- ROCE (15.2%) and ROE (14.1%) show moderate efficiency.
- Debt-to-equity ratio of 0.47 indicates manageable leverage.
- Trading above DMA 50 (₹571) and DMA 200 (₹589), confirming bullish momentum.
- MACD positive (29.6), reinforcing technical strength.
⚠️ Limitation
- Extremely high P/E of 110 vs industry average of 21.5, signaling severe overvaluation.
- EPS of ₹5.79 is very low relative to price.
- PEG ratio of 17.3 highlights unsustainable valuation relative to growth.
- Dividend yield of 0.04% offers negligible income support.
- RSI at 62.1 indicates nearing overbought territory.
- Quarterly PAT flat (₹156 Cr. vs ₹157 Cr.), showing stagnation in earnings.
🚨 Company Negative News
- FII holdings declined (-0.06%), showing reduced foreign investor confidence.
- Valuation multiples remain stretched compared to peers.
- Weak earnings momentum despite high valuations.
🌟 Company Positive News
- DII holdings increased slightly (+0.01%), reflecting domestic institutional support.
- Stock trading at 52.6% of 52-week range, showing recovery potential.
- Sectoral demand for gas distribution remains strong.
🏭 Industry
- Industry P/E of 21.5 highlights ATGL’s extreme valuation premium.
- Gas distribution sector outlook remains positive with rising demand.
- Sector requires consistent profitability to justify high valuations.
📝 Conclusion
ATGL is momentum-driven but fundamentally stretched, with valuations far above industry norms and earnings stagnation.
🔑 **Entry Zone:** ₹560–₹590, closer to DMA support and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable only for short-to-medium term; long-term suitability is weak unless ROE/ROCE improve and valuations correct. Risk remains high due to extreme overvaluation, flat earnings, and overbought RSI; maintain strict stop-loss around ₹600.
This frames ATGL as a tactical trading candidate rather than a strong long-term investment. Would you like me to extend this into a peer benchmarking overlay (ATGL vs MGL, IGL, and GAIL) to highlight relative valuation and efficiency gaps?