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Indraprastha Gas Ltd Stock Analysis

Large Cap
Evaluated by 4962 users | BSE: 532514 | NSE: IGL |
Industrial Gases & Fuels

Indraprastha Gas Limited (IGL) is incorporated in 1998, the company is a Joint Venture of GAIL and BPCL. Government of National Capital Territory (NCT) of Delhi is also holding 5% equity. The company was listed in stock exchange in December 2003. IGL started...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indraprastha Gas Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 24.23%22.09%21.37%19.43%21.2%18.05%21.17%21.23%20.86%25.06%
Value Creation Index 0.860.700.640.490.630.390.630.630.60NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7462,5173,3673,9143,6813,6863,8154,5355,7656,485
Y-o-Y Gr. Rt.-44.2%33.8%16.2%-6%0.1%3.5%18.9%27.1%12.5%
Adjusted EPS (Rs.) 3.694.395.075.156.265.998.169.6811.2616.28
Y-o-Y Gr. Rt.-19%15.5%1.6%21.6%-4.3%36.2%18.6%16.3%44.6%
Book Value per Share (Rs.) 14.3417.5621.3325.1929.9735.9541.8150.185972.32
Adjusted Net Profit 2583073553614384205716777881,140
Net Op. Cash Flow (Rs. Cr.) 4106126436486646539468791,1571,361
Debt to Cash Flow from Ops 0.840.880.710.540.2200000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Indraprastha Gas Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 15.7%12%19.4%12.5%
Adjusted EPS 17.9%21.1%25.9%44.6%
Book Value per Share 19.719.32022.6
Share Price 32% 35.2% 25.3% 9.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 28.2327.526.0722.1522.6818.1920.9921.0420.6224.8
Operating Profit Margin (%) 28.5225.3922.6820.1421.6821.1525.4224.9622.0323.65
Net Profit Margin (%) 14.7912.210.549.2211.911.3814.9814.9413.6717.57
Debt to Equity 0.340.440.310.20.0700000
Working Capital Days 1391047061654831272421
Cash Conversion Cycle -21-12-6-115-4-14-12-8
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 45.00%
Institutions 44.73%
Non-Institutions 10.27%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Indraprastha Gas Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Indraprastha Gas Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Indraprastha Gas Ltd's performance infers:

Indraprastha Gas Ltd earnings have grown by 21.1%, whereas share price has appreciated 35.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Indraprastha Gas Ltd share prices over the last 10 years. Here is what we found out:

Indraprastha Gas Ltd share price has appreciated 22.9% annually over the past ten years.

Indraprastha Gas Limited (IGL) is incorporated in 1998, the company is a Joint Venture of GAIL and BPCL. Government of National Capital Territory (NCT) of Delhi is also holding 5% equity. The company was listed in stock exchange in December 2003. IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers.

The project was started to lay the network for the distribution of

Indraprastha Gas Limited (IGL) is incorporated in 1998, the company is a Joint Venture of GAIL and BPCL. Government of National Capital Territory (NCT) of Delhi is also holding 5% equity. The company was listed in stock exchange in December 2003. IGL started its operations in NCT of Delhi in 1999 with only 9 CNG stations and 1000 PNG consumers.

The project was started to lay the network for the distribution of natural gas in the National Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors. With the backing of strong promoters - GAIL (India) and Bharat Petroleum Corporation (BPCL) - IGL plans to provide natural gas in the entire capital region.

Business area of the company

The company mainly operates in two businesses, they are:

  • To provide safe, convenient and reliable natural gas supply to its customers in the domestic and commercial sectors.
  • To provide a cleaner, environment-friendly alternative as auto fuel to residents of the areas of NCT of Delhi; districts Gautam Budh Nagar, Ghaziabad, Hapur, Muzaffarnagar, Shamli, uncovered parts of Meerut & Kanpur, Fatehpur and Hamirpur in Uttar Pradesh; districts Rewari, Gurugram, Karnal and Kaithal in Haryana; and, district Ajmer, Pali & Rajsamand in Rajasthan. This will considerably bring down the alarmingly high levels of pollution.

Products

PNG - PNG is mainly methane - CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured from the oil / gas wells and transported through a network of pipelines across the country.

CNG - CNG stands for compressed natural gas. It is gaseous fuel and is a mixture of hydrocarbons mainly Methane. For use in Automobiles as fuel, it is compressed to a pressure of 200-250 Kg/cm² to enhance the vehicle on-board storage capacity.CNG is a fossil fuel substitute for other auto fuels such as petrol, diesel, Auto LPG etc.

Commercial & Industrial Usage - Natural gas is a versatile fuel which is gaining immense popularity for Industrial and commercial usage. Under the commercial sector all leading hotels, restaurants, malls, commercial complexes and hospitals in the Delhi & NCR are being supplied PNG by IGL. In the industrial sector, PNG is being used to run boilers, furnaces, ovens, hot water generators, thermifluid heaters, gas turbines for power generation and Vapour Absorption Machines (VAM) for heating and cooling applications. Industries have saved on cost and storage space by using PNG and in turn pollution levels have also gone down.

Awards for CSR activities:

  • CSR Community Initiative Awards for IGL Swasth Saarthi and Self Defence training programmes at New Delhi.
  • CSR Health Impact Awards 2018 for IGL Swasth Saarthi programme at New Delhi.
  • Asia’s best CSR Leadership Awards for categories of Women Empowerment and Innovation in CSR practices at Singapore.
  • CSR Times Awards 2018 organized at New Delhi.
  • Social Imprints - CSR Awards & Summit 2019 for Women Empowerment organized at New Delhi.
  • Social and Business Enterprise Responsible Awards organized by SABERA for IGL Swasth Saarthi Programme at New Delhi.
  • CSR Leadership award under the category Conservation, Pollution Control and Clean Environment & Resources held at New Delhi.
  • Award for Gender Sensitization CSR programme at Dainik Jagran CSR awards 2019 at New Delhi.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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