ATGL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | ATGL | Market Cap | 71,812 Cr. | Current Price | 653 ₹ | High / Low | 798 ₹ |
| Stock P/E | 113 | Book Value | 43.9 ₹ | Dividend Yield | 0.04 % | ROCE | 15.2 % |
| ROE | 14.1 % | Face Value | 1.00 ₹ | DMA 50 | 594 ₹ | DMA 200 | 593 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.01 % | PAT Qtr | 156 Cr. | PAT Prev Qtr | 157 Cr. |
| RSI | 58.0 | MACD | 8.93 | Volume | 1,19,32,035 | Avg Vol 1Wk | 51,02,085 |
| Low price | 454 ₹ | High price | 798 ₹ | PEG Ratio | 17.8 | Debt to equity | 0.47 |
| 52w Index | 57.9 % | Qtr Profit Var | 4.32 % | EPS | 5.79 ₹ | Industry PE | 21.4 |
📊 Financials: Adani Total Gas (ATGL) shows moderate fundamentals with ROE at 14.1% and ROCE at 15.2%, reflecting average efficiency. Debt-to-equity is manageable at 0.47, indicating moderate leverage. Quarterly PAT stood at ₹156 Cr., nearly flat compared to ₹157 Cr. in the previous quarter, showing limited growth. EPS is ₹5.79, highlighting modest earnings power relative to its market capitalization.
💰 Valuation: The stock trades at a very high P/E of 113 compared to the industry average of 21.4, suggesting extreme overvaluation. P/B ratio is ~14.9 (Price ₹653 / Book Value ₹43.9). PEG ratio of 17.8 signals costly growth expectations. Intrinsic value appears significantly lower than current price, making entry unattractive at present levels.
🏢 Business Model: ATGL operates in city gas distribution, focusing on CNG and PNG supply. Its competitive advantage lies in scale, integration within the Adani Group, and government support for clean energy initiatives. However, profitability metrics remain modest, limiting overall health.
📈 Entry Zone: A safer entry zone would be near ₹500–550, closer to its DMA 200 and below current highs. Current valuation does not justify fresh entry. Long-term holding is risky unless profitability improves and valuation normalizes.
Positive
- 📌 ROE (14.1%) and ROCE (15.2%) reflect moderate efficiency
- 📌 Debt-to-equity ratio of 0.47 indicates manageable leverage
- 📌 Increase in DII holdings (+0.01%)
- 📌 Strategic positioning in clean energy distribution
Limitation
- ⚠️ Extremely high P/E ratio (113) vs industry average (21.4)
- ⚠️ Weak EPS of ₹5.79 relative to market cap
- ⚠️ PEG ratio of 17.8 highlights costly growth expectations
- ⚠️ Dividend yield of 0.04% offers negligible income
- ⚠️ Flat quarterly PAT growth (₹156 Cr. vs ₹157 Cr.)
Company Negative News
- 📉 Decline in FII holdings (-0.06%)
- 📉 Limited quarterly profit growth
Company Positive News
- 📈 Increase in DII holdings (+0.01%)
- 📈 Strong positioning in city gas distribution
Industry
- 🏦 Industry PE at 21.4, far below ATGL’s valuation
- 📊 Gas distribution sector benefits from government incentives and rising demand for clean energy
Conclusion
🔎 Adani Total Gas is fundamentally weak with modest return metrics and extreme overvaluation despite strong positioning in clean energy distribution. Entry is advisable only near ₹500–550. Long-term holding is risky unless profitability improves and valuation aligns with industry norms.
Would you like me to also prepare a side-by-side comparison of Adani Total Gas vs gas distribution peers to highlight its valuation gap more clearly?