Check Before You Invest : Indraprastha Gas Ltd

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

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

Q: Is Indraprastha Gas Ltd a good quality company?

Indraprastha Gas Ltd is a good quality company, based on a consistently good 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 Indraprastha Gas Ltd undervalued or overvalued?

Indraprastha Gas Ltd appears 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: 15.86, Historic Median: 19.93. Price to Book, Current: 2.17, Historic Median: 3.83. Price to Sales, Current: 1.21, Historic Median: 2.12. EV to EBITDA, Current: 8.02, Historic Median: 11.77

Q: Is Indraprastha Gas Ltd a good buy now?

Indraprastha Gas Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Indraprastha Gas Ltd?

Indraprastha Gas Ltd revenue growth is 6.6% for FY-2025, which is below its 5-year CAGR of 18.14%, indicating slower growth.

Q: Gross Profit margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.6% for FY-2025, which is below its 5-year median of 17.6%, indicating decreasing margins.

Q: Operating Profit Margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.39% for FY-2025, which is below its 5-year median of 17.08% indicating decreasing margins.

Q: Net Profit Margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Net Profit Margin is 9.83% for FY-2025, is below its 5-year median of 12.49%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.6, Historic Median: 17.6. Operating Profit Margin (%), Current: 13.39, Historic Median: 17.08. Net Profit Margin (%), Current: 9.83, Historic Median: 12.49

Q: Return on Asset of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Return on Asset is 10.75%, which is below its 5-year historical median of 13%, indicating deteriorated asset utilization efficiency.

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

Indraprastha Gas Ltd Return on capital employed is 22% for FY-2025, which is below its 5-year historical median of 27.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Indraprastha Gas Ltd

Snapshot

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

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

Q.2 Is Indraprastha Gas Ltd a good quality company?

Indraprastha Gas Ltd is a good quality company, based on a consistently good 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 Indraprastha Gas Ltd undervalued or overvalued?

Indraprastha Gas Ltd appears 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	15.86	19.93
Price to Book	2.17	3.83
Price to Sales	1.21	2.12
EV to EBITDA	8.02	11.77

Q.4 Is Indraprastha Gas Ltd a good buy now?

Indraprastha Gas Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Indraprastha Gas Ltd?

Indraprastha Gas Ltd revenue growth is 6.6% for FY-2025, which is below its 5-year CAGR of 18.14%, indicating slower growth.

Q.2 Gross Profit margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.6% for FY-2025, which is below its 5-year median of 17.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.39% for FY-2025, which is below its 5-year median of 17.08% indicating decreasing margins.

Q.4 Net Profit Margin of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Net Profit Margin is 9.83% for FY-2025, is below its 5-year median of 12.49%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	14.6	17.6
Operating Profit Margin (%)	13.39	17.08
Net Profit Margin (%)	9.83	12.49

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Return on Asset is 10.75%, which is below its 5-year historical median of 13%, indicating deteriorated asset utilization efficiency.

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

Indraprastha Gas Ltd Return on capital employed is 22% for FY-2025, which is below its 5-year historical median of 27.88%. 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 Indraprastha Gas Ltd?

Indraprastha Gas Ltd Return on equity is 16.46% for FY-2025, which is below its 5-year historical median of 20.53%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Cash conversion cycle is -7 days, above its 5-year historical median of -8 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)	1.21	1.21
ROE (%)	16.46	20.53
ROCE (%)	22	27.88
Cash Conversion Cycle	-7 days	-8 days

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

Q.9 Debt to Equity ratio of Indraprastha Gas Ltd?

Indraprastha Gas Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

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

Indraprastha Gas Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indraprastha Gas Ltd?

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

Promoters hold 45.00% of the Indraprastha Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

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

Indraprastha Gas Ltd revenue CAGR is 18.14%, compared to the industry median CAGR of 15.74%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.6	15.7
Gross Profit Growth (%)	-11.4	7.7
Operating Profit Growth (%)	-16.4	6.4
Net Profit Growth (%)	-16	2.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.21	1.33
ROE (%)	16.46	20.28
ROCE (%)	22	25.89
Cash Conversion Cycle (days)	-6.71	18

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 10.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.3%	-9.6%	-14.1%	-25.5%

Q.2 Valuation ratios of Indraprastha Gas Ltd vs historical?

The current P/E ratio of 15.86 is lower than its historical median of 19.93, 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	15.86	19.93	19.08
Price to Book	2.17	3.83	2.33
Price to Sales	1.21	2.12	1.93
EV to EBITDA	8.02	11.77	11.22

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Check Before You Invest : Indraprastha 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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