Check Before You Invest : Gagan Gases Ltd

Q: 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: Is Gagan Gases Ltd a good quality company?

Gagan Gases Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Gagan Gases Ltd undervalued or overvalued?

Gagan Gases Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 76.67, Historic Median: 52.46. Price to Book, Current: 2.79, Historic Median: 3.41. Price to Sales, Current: 1.76, Historic Median: 2.11. EV to EBITDA, Current: 32.13, Historic Median: 19.48

Q: 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

Q: 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 35.41%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Gagan Gases Ltd?

Gagan Gases Ltd Net Profit Margin is 4.69% for FY-2025, is above its 5-year median of 2.82%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.3, Historic Median: 10.7. Operating Profit Margin (%), Current: 5.91, Historic Median: 9.57. Net Profit Margin (%), Current: 4.69, Historic Median: 2.82

Q: 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: 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 5-year historical median of 16.08%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Gagan Gases Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Gagan Gases Ltd undervalued or overvalued?

Gagan Gases Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	76.67	52.46
Price to Book	2.79	3.41
Price to Sales	1.76	2.11
EV to EBITDA	32.13	19.48

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 35.41%, 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 its 5-year median of 2.82%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	7.3	10.7
Operating Profit Margin (%)	5.91	9.57
Net Profit Margin (%)	4.69	2.82

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Gagan Gases Ltd?

Gagan Gases Ltd Return on capital employed is 11.82% for FY-2025, which is below its 5-year historical median of 16.08%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Gagan Gases Ltd?

Gagan Gases Ltd Return on equity is 8.38% for FY-2025, which is above its 5-year historical median of 5.25%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Gagan Gases Ltd?

Gagan Gases Ltd Cash conversion cycle is 20 days, below its 5-year historical median of 85 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.51	1.23
ROE (%)	8.38	5.25
ROCE (%)	11.82	16.08
Cash Conversion Cycle	20 days	85 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Gagan Gases Ltd?

Gagan Gases Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.05, 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

D: Promoter shareholding and pledge status of Gagan Gases Ltd?

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)

E: How does Gagan Gases Ltd performance compare with that of its Peers?

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 1.69%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	167.1	1.7
Gross Profit Growth (%)	162.5	17.8
Operating Profit Growth (%)	112.5	13.9
Net Profit Growth (%)	350	17.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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 10.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.1%	6.6%	19.4%	11.6%

Q.2 Valuation ratios of Gagan Gases Ltd vs historical?

The current P/E ratio of 76.67 is higher than its historical median of 52.46, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	76.67	52.46	11.53
Price to Book	2.79	3.41	2.25
Price to Sales	1.76	2.11	1.37
EV to EBITDA	32.13	19.48	5.42

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Check Before You Invest : Gagan Gases Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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