⚠ 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: 3.7
| Stock Code | IGL | Market Cap | 24,424 Cr. | Current Price | 174 ₹ | High / Low | 229 ₹ |
| Stock P/E | 17.9 | Book Value | 70.0 ₹ | Dividend Yield | 2.44 % | ROCE | 20.8 % |
| ROE | 15.7 % | Face Value | 2.00 ₹ | DMA 50 | 188 ₹ | DMA 200 | 201 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 373 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 36.1 | MACD | -4.28 | Volume | 7,87,550 | Avg Vol 1Wk | 18,96,555 |
| Low price | 171 ₹ | High price | 229 ₹ | PEG Ratio | 5.31 | Debt to equity | 0.01 |
| 52w Index | 5.46 % | Qtr Profit Var | -13.6 % | EPS | 9.74 ₹ | Industry PE | 19.8 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 356 Cr. to 373 Cr. QoQ, but quarterly profit variation shows -13.6%, indicating earnings pressure.
- Margins: ROE at 15.7% and ROCE at 20.8% are healthy, reflecting good efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.01 highlights a virtually debt-free balance sheet, ensuring strong financial stability.
- Cash Flow: Dividend yield of 2.44% provides decent shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 17.9 vs Industry PE of 19.8 → slightly undervalued compared to peers.
- P/B Ratio: Current Price (174 ₹) / Book Value (70 ₹) ≈ 2.49, moderately priced.
- PEG Ratio: 5.31 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near support (171 ₹) offers limited downside risk compared to high of 229 ₹.
🏦 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 monopoly-like presence in NCR region.
- Overall health is stable, with consistent profitability and minimal debt, though growth prospects are slowing.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 170 ₹ – 180 ₹, near support levels.
- Long-Term Holding: Suitable for conservative investors seeking stable returns and dividends, but monitor earnings growth and regulatory changes.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Healthy ROE (15.7%) and ROCE (20.8%).
- Dividend yield of 2.44% provides steady income.
⚠️ Limitation
- PEG ratio (5.31) indicates valuation mismatch with growth.
- Quarterly profit variation (-13.6%) shows earnings inconsistency.
- Stock trading below DMA 50 (188 ₹) and DMA 200 (201 ₹) indicates technical weakness.
📉 Company Negative News
- FII holdings decreased (-0.21%), showing reduced foreign investor confidence.
- Bearish technical indicators with RSI (36.1) and MACD (-4.28).
📈 Company Positive News
- DII holdings increased (+0.09%), reflecting domestic institutional support.
- PAT improved QoQ, showing operational strength despite margin pressure.
🏭 Industry
- Industry PE at 19.8 is slightly higher than IGL’s PE, highlighting relative undervaluation.
- City gas distribution sector growth driven by clean energy adoption and government initiatives.
- Competition from other gas distributors remains limited in NCR, giving IGL strong market positioning.
🔎 Conclusion
- IGL offers stability with strong returns and a debt-free balance sheet.
- Valuation is fair compared to peers, but growth prospects appear stretched.
- Best suited for long-term investors entering near 170–180 ₹, with potential upside as clean energy demand expands.