⚠ 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.
IGL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | IGL | Market Cap | 22,032 Cr. | Current Price | 157 ₹ | High / Low | 229 ₹ |
| Stock P/E | 15.3 | Book Value | 70.0 ₹ | Dividend Yield | 2.70 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 171 ₹ | DMA 200 | 192 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 359 Cr. | PAT Prev Qtr | 373 Cr. |
| RSI | 38.6 | MACD | -4.67 | Volume | 17,37,685 | Avg Vol 1Wk | 30,22,780 |
| Low price | 152 ₹ | High price | 229 ₹ | PEG Ratio | 4.55 | Debt to equity | 0.01 |
| 52w Index | 6.81 % | Qtr Profit Var | 25.4 % | EPS | 10.3 ₹ | Industry PE | 14.4 |
📊 Financial Overview
- Revenue & Profitability: PAT declined slightly from ₹373 Cr. to ₹359 Cr. (QoQ), showing mild earnings pressure.
- Margins: ROE at 15.7% and ROCE at 20.8% are solid, reflecting healthy profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.01 indicates a nearly debt-free balance sheet.
- Cash Flow: EPS of ₹10.3 is modest, limiting earnings strength relative to valuation.
💹 Valuation Metrics
- P/E Ratio: 15.3 vs Industry PE of 14.4 → slightly overvalued compared to peers.
- P/B Ratio: Price ₹157 vs Book Value ₹70 → trading at a premium.
- PEG Ratio: 4.55 → suggests valuation is expensive relative to growth.
- Intrinsic Value: Fundamentals are decent, but valuation looks stretched given modest EPS.
🏢 Business Model & Competitive Advantage
- Indraprastha Gas Limited (IGL) operates in city gas distribution, supplying CNG and PNG to households, industries, and vehicles.
- Competitive advantage lies in strong distribution network, government support, and rising demand for clean energy alternatives.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹150–160 range looks safer given technical weakness and valuation.
- Long-Term Holding: Suitable for investors seeking exposure to clean energy distribution. Monitor profitability consistency and growth outlook.
✅ Positive
- Debt-free balance sheet (Debt-to-equity 0.01).
- Strong ROCE (20.8%) and ROE (15.7%).
- Dividend yield of 2.70% provides steady income.
- DII holdings increased (+0.09%).
⚠️ Limitation
- PEG ratio (4.55) indicates expensive valuation relative to growth.
- EPS of ₹10.3 is modest relative to price.
- Stock trading below DMA 50 & DMA 200, showing bearish technical trend.
📉 Company Negative News
- FII holdings decreased (-0.21%).
- Quarterly PAT declined slightly (₹373 Cr. to ₹359 Cr.).
- Stock corrected from high of ₹229 to current ₹157.
📈 Company Positive News
- Dividend yield of 2.70% supports investor returns.
- DII inflows (+0.09%) reflect domestic institutional support.
- Strong ROCE and ROE highlight operational efficiency.
🏦 Industry
- Industry PE at 14.4 highlights sector trades at slightly lower multiples than IGL.
- City gas distribution sector growth supported by government clean energy initiatives and rising demand for CNG/PNG.
🔎 Conclusion
- IGL is fundamentally strong with excellent ROCE/ROE and debt-free status but faces valuation concerns and modest EPS growth.
- Entry around ₹150–160 is favorable for long-term investors.
- Strong long-term holding potential given clean energy demand, but monitor institutional flows and earnings consistency.