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Check Before You Invest : The Southern Gas Ltd

BSE: 509910 NSE: ISIN: INE532U01012
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does The Southern Gas Ltd belong to?
The Southern Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is The Southern Gas Ltd a good quality company?
The Southern Gas Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is The Southern Gas Ltd undervalued or overvalued?
The Southern Gas Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is The Southern Gas Ltd a good buy now?
The Southern Gas 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 The Southern Gas Ltd?
The Southern Gas Ltd revenue growth is 0.3% for FY-2025 , which is below its 5 year CAGR of 3.4% , indicating slower growth.
Q.2 Gross Profit margin of The Southern Gas Ltd?
The Southern Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025 , which is below its 5 year median of 12.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of The Southern Gas Ltd?
The Southern Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.35% for FY-2025 , which is below its 5 year median of 8.77% indicating decreasing margins.
Q.4 Net Profit Margin of The Southern Gas Ltd?
The Southern Gas Ltd Net Profit Margin is 5.07% for FY-2025 , is below with its 5 year median of 5.08%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 11.6 12.1
Operating Profit Margin 8.35 8.77
Net Profit Margin 5.07 5.08
Q.5 Return on Asset of The Southern Gas Ltd?
The Southern Gas Ltd Return on Asset is 5.5%, which is below its 5 year historical median of 5.72%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of The Southern Gas Ltd?
The Southern Gas Ltd Return on equity is 7.69% for FY-2025 , which is below its historical median of 8.27%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of The Southern Gas Ltd?
The Southern Gas Ltd Return on capital employed is 10.15% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of The Southern Gas Ltd?
The Southern Gas Ltd Cash conversion cycle is 52 days, above its historical median of 48 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.08 1.16
ROE 7.69 8.27
ROCE 10.15 11.24
Cash Conversion Cycle 52 days 48 days
Q.9 Debt to Equity ratio of The Southern Gas Ltd?
The Southern Gas Ltd Debt-to-Equity ratio is 0.00 , 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 The Southern Gas Ltd?
The Southern Gas Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of The Southern Gas Ltd?
Promoters hold 66.80% of the The Southern Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of The Southern Gas Ltd vs industry peers?
The Southern Gas Ltd revenue CAGR is 3.37% , compared to the industry median CAGR of 4.12% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 35.7 35.7
Gross Profit 4.1 0.4
Operating Profit 3 0.3
Net Profit 1.8 0.1
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.08 0.82
ROE 7.69 3.78
ROCE 10.15 5.33
Cash Conversion Cycle (days) 52.02 48

Valuation & price assessment

Q.1 Stock return of The Southern Gas Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -17.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -17.9% -31.2% -29.6% 10.2%
Q.3 Valuation ratios of The Southern Gas Ltd vs historical?
The current P/E is lower 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 0.03 0.20 21.31
Price to Book - 0.01 2.14
Price to Sales - 0.01 1.22
EV to EBITDA -0.28 -1.57 5.43

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