Check Before You Invest : Adani Total Gas Ltd

Q: Which industry/sub-sector does Adani Total Gas Ltd belong to?

Adani Total Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Gas Transmission/Marketing segment.

Q: Is Adani Total Gas Ltd a good quality company?

Adani Total Gas Ltd is a weak quality company, based on a inconsistent 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 Adani Total Gas Ltd undervalued or overvalued?

Adani Total Gas 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: 106.29, Historic Median: 156.80. Price to Book, Current: 14.33, Historic Median: 22.57. Price to Sales, Current: 10.88, Historic Median: 15.50. EV to EBITDA, Current: 57.9, Historic Median: 73.27

Q: Is Adani Total Gas Ltd a good buy now?

Adani Total Gas Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Adani Total Gas Ltd?

Adani Total Gas Ltd revenue growth is 11.7% for FY-2025, which is below its 5-year CAGR of 21.68%, indicating slower growth.

Q: Gross Profit margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.7% for FY-2025, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q: Operating Profit Margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.76% for FY-2025, which is below its 5-year median of 24.67% indicating decreasing margins.

Q: Net Profit Margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Net Profit Margin is 13.09% for FY-2025, is below its 5-year median of 14.92%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 19.7, Historic Median: 21.5. Operating Profit Margin (%), Current: 22.76, Historic Median: 24.67. Net Profit Margin (%), Current: 13.09, Historic Median: 14.92

Q: Return on Asset of Adani Total Gas Ltd?

Adani Total Gas Ltd Return on Asset is 9.18%, which is below its 5-year historical median of 10.91%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Adani Total Gas Ltd?

Adani Total Gas Ltd Return on capital employed is 17.73% for FY-2025, which is below its 5-year historical median of 21.52%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Adani Total Gas Ltd

Snapshot

Q.1 Which industry/sub-sector does Adani Total Gas Ltd belong to?

Adani Total Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Gas Transmission/Marketing segment.

Q.2 Is Adani Total Gas Ltd a good quality company?

Adani Total Gas Ltd is a weak quality company, based on a inconsistent 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 Adani Total Gas Ltd undervalued or overvalued?

Adani Total Gas 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	106.29	156.80
Price to Book	14.33	22.57
Price to Sales	10.88	15.50
EV to EBITDA	57.9	73.27

Q.4 Is Adani Total Gas Ltd a good buy now?

Adani Total Gas Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Adani Total Gas Ltd?

Adani Total Gas Ltd revenue growth is 11.7% for FY-2025, which is below its 5-year CAGR of 21.68%, indicating slower growth.

Q.2 Gross Profit margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.7% for FY-2025, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.76% for FY-2025, which is below its 5-year median of 24.67% indicating decreasing margins.

Q.4 Net Profit Margin of Adani Total Gas Ltd?

Adani Total Gas Ltd Net Profit Margin is 13.09% for FY-2025, is below its 5-year median of 14.92%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	19.7	21.5
Operating Profit Margin (%)	22.76	24.67
Net Profit Margin (%)	13.09	14.92

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Adani Total Gas Ltd?

Adani Total Gas Ltd Return on Asset is 9.18%, which is below its 5-year historical median of 10.91%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Adani Total Gas Ltd?

Adani Total Gas Ltd Return on capital employed is 17.73% for FY-2025, which is below its 5-year historical median of 21.52%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Adani Total Gas Ltd?

Adani Total Gas Ltd Return on equity is 16.81% for FY-2025, which is below its 5-year historical median of 20.47%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Adani Total Gas Ltd?

Adani Total Gas Ltd Cash conversion cycle is 5 days, above its 5-year historical median of 1 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.76	0.79
ROE (%)	16.81	20.47
ROCE (%)	17.73	21.52
Cash Conversion Cycle	5 days	1 days

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

Q.9 Debt to Equity ratio of Adani Total Gas Ltd?

Adani Total Gas Ltd Debt-to-Equity ratio is 0.42, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Adani Total Gas Ltd?

Adani Total Gas Ltd Debt to cash flow from operations is 1.81, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Adani Total Gas Ltd?

Q.1 Promoter shareholding and pledge status of Adani Total Gas Ltd?

Promoters hold 74.80% of the Adani Total Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Adani Total Gas Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Adani Total Gas Ltd vs industry peers?

Adani Total Gas Ltd revenue CAGR is 21.68%, compared to the industry median CAGR of 21.68%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	11.7	21.7
Gross Profit Growth (%)	2.6	12.2
Operating Profit Growth (%)	2.6	13.8
Net Profit Growth (%)	-2.1	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.76	0.79
ROE (%)	16.81	20.47
ROCE (%)	17.73	21.52
Cash Conversion Cycle (days)	5.33	1

Valuation & price assessment

Q.1 Stock return of Adani Total Gas Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -13.51% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-13.5%	-9.1%	5.2%

Q.2 Valuation ratios of Adani Total Gas Ltd vs historical?

The current P/E ratio of 106.29 is lower than its historical median of 156.80, indicating that the stock is trading below 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	106.29	156.80	19.08
Price to Book	14.33	22.57	2.33
Price to Sales	10.88	15.50	1.93
EV to EBITDA	57.9	73.27	11.22

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Check Before You Invest : Adani Total Gas 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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