Adani Total Gas
Stock Snapshot
Price Performance
Vista Outlook
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Adani Total Gas Limited (ATGL) is navigating a complex landscape marked by margin pressures stemming from geopolitical tensions and the withdrawal of the government's pooled gas mechanism. Despite these challenges, management remains optimistic, highlighting double-digit volume growth in CNG and a robust expansion of its industrial and commercial customer base. The strategic shift towards long-term gas sourcing contracts aims to mitigate reliance on volatile spot markets, which is crucial for restoring margins. Vista's financial outlook reflects stable revenue growth aligned with historical performance, although margins are expected to remain under pressure due to elevated gas sourcing costs. The company's commitment to expanding its City Gas Distribution network and investing in clean energy infrastructure positions it well for future growth, particularly as India targets a 15% share for natural gas in its energy mix by 2030. However, the ongoing geopolitical situation and its impact on commodity prices present significant headwinds. Over the next 12-24 months, ATGL's focus on capital deployment and regulatory support will be critical in navigating these challenges and capitalizing on growth opportunities in the clean energy sector
Why We Like This Stock
- Double-digit volume growth in CNG and expansion in industrial and commercial sectors
- Strategic shift towards long-term gas sourcing contracts to stabilize margins
- Strong financial health supports ambitious infrastructure and clean energy investments
Things To Watch Out For
- Margin pressures due to geopolitical tensions and elevated gas sourcing costs
- Ongoing West Asia conflict leading to commodity price volatility
- Dependence on regulatory support for the successful execution of growth initiatives
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,475 | 5,000 | 5,894 | 6,603 | 7,092 |
| Profit Before Tax (Cr.) | 896 | 876 | 882 | 690 | 821 |
| PBT Margin | 20.0% | 17.5% | 1496.4% | 10.4% | 11.6% |
| Net Profit (Cr.) | 717 | 705 | 710 | 552 | 657 |
| Earnings Per Share | 6.5 | 6.4 | 6.5 | 5.0 | 6.0 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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Adani Total Gas Limited engages in the city gas distribution (CGD) business in India. It supplies piped natural gas and compressed natural gas to the domestic, commercial, industrial, and transportation sectors. The company also provides biogas, biofuel, biomass, LCNG, HCNG, EV, and hydrogen. In addition, it manufactures various equipment; and offers value-added services related to the CGD business. The company was formerly known as Adani Gas Limited and changed its name to Adani Total Gas Limited in January 2021. Adani Total Gas Limited was founded in 2004 and is headquartered in Ahmedabad, India.