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Check Before You Invest : Gagan Gases Ltd

BSE: 524624 NSE: ISIN: INE076D01016
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does Gagan Gases Ltd belong to?
Gagan Gases Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is Gagan Gases Ltd a good quality company?
Gagan Gases Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Gagan Gases Ltd undervalued or overvalued?
Gagan Gases Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Gagan Gases Ltd a good buy now?
Gagan Gases Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Gagan Gases Ltd?
Gagan Gases Ltd revenue growth is 167.1% for FY-2025 , which is above its 5 year CAGR of 35.4% , indicating faster growth.
Q.2 Gross Profit margin of Gagan Gases Ltd?
Gagan Gases Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.3% for FY-2025 , which is below its 5 year median of 10.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Gagan Gases Ltd?
Gagan Gases Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.91% for FY-2025 , which is below its 5 year median of 9.57% indicating decreasing margins.
Q.4 Net Profit Margin of Gagan Gases Ltd?
Gagan Gases Ltd Net Profit Margin is 4.69% for FY-2025 , is above with its 5 year median of 2.82%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 7.3 10.7
Operating Profit Margin 5.91 9.57
Net Profit Margin 4.69 2.82
Q.5 Return on Asset of Gagan Gases Ltd?
Gagan Gases Ltd Return on Asset is 7.07%, which is above its 5 year historical median of 2.96%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Gagan Gases Ltd?
Gagan Gases Ltd Return on equity is 8.38% for FY-2025 , which is above its historical median of 5.25%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Gagan Gases Ltd?
Gagan Gases Ltd Return on capital employed is 11.82% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Gagan Gases Ltd?
Gagan Gases Ltd Cash conversion cycle is 20 days, below its historical median of 85 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.51 1.23
ROE 8.38 5.25
ROCE 11.82 16.08
Cash Conversion Cycle 20 days 85 days
Q.9 Debt to Equity ratio of Gagan Gases Ltd?
Gagan Gases Ltd Debt-to-Equity ratio is 0.01 , which is lower with the industry average of 0.09 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Gagan Gases Ltd?
Gagan Gases Ltd Debt to cash flow from operations is 0.11 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gagan Gases Ltd?
Promoters hold 38.76% of the Gagan Gases Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gagan Gases Ltd vs industry peers?
Gagan Gases Ltd revenue CAGR is 35.41% , compared to the industry median CAGR of 4.12% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5.7 35.7
Gross Profit 0.4 0.4
Operating Profit 0.3 0.3
Net Profit 0.3 0.1
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.51 0.82
ROE 8.38 3.78
ROCE 11.82 5.33
Cash Conversion Cycle (days) 19.93 48

Valuation & price assessment

Q.1 Stock return of Gagan Gases Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 5.1% 6.9% 2.5% -32.6%
Q.3 Valuation ratios of Gagan Gases Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 50.82 32.39 21.31
Price to Book 1.85 3.95 2.14
Price to Sales 1.17 1.49 1.22
EV to EBITDA 21.24 9.44 5.43

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