Adani Total Gas Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹74,710 crore, a debt-to-equity ratio of 0.37, and a return on equity (ROE) of 20.5%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
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Overview of the Gas Distribution Sector
The gas distribution sector plays a crucial role in the energy industry, focusing on the delivery of natural gas to residential, commercial, and industrial customers. It is essential for meeting the growing demand for cleaner and more sustainable energy sources, especially in urban areas.
With increasing environmental concerns and government initiatives to promote natural gas, the sector is witnessing rapid growth. Gas distribution companies are expanding infrastructure, integrating CNG and PNG networks, and capitalizing on the shift towards greener energy, positioning themselves for long-term growth in emerging and developed markets.
Financial Analysis of Adani Total Gas Ltd
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 4,475 | 4,378 | 3,038 | 1,696 |
| Expenses | 3,371 | 3,508 | 2,265 | 991.28 |
| Operating Profit | 1,104 | 869.87 | 773 | 704.32 |
| OPM % | 24.43 | 19.7 | 25.1 | 40.48 |
| Other Income | 44.02 | 36.85 | 41.5 | 29.89 |
| EBITDA | 1,148 | 906.72 | 814.5 | 748.68 |
| Interest | 111.45 | 78.43 | 52.73 | 40.48 |
| Depreciation | 157.88 | 113.1 | 82.73 | 62.52 |
| Profit Before Tax | 878.41 | 715.19 | 679.04 | 631.21 |
| Tax % | 26.05 | 26.01 | 25.68 | 25.23 |
| Net Profit | 667.5 | 546.49 | 509.4 | 462.82 |
| EPS | 6.07 | 4.97 | 4.63 | 4.21 |
| Dividend Payout % | 4.12 | 5.03 | 5.4 | 5.94 |
* Consolidated Figures in Rs. Crores
Adani Total Gas Limited Company Metrics
Adani Total Gas Ltd financial metrics show steady growth: In FY24, sales reached ₹4,475 crore, up from ₹4,378 crore in FY23 and ₹3,038 crore in FY22. Operating profit improved to ₹1,104 crore, reflecting enhanced operational efficiency and financial stability.
Sales Growth: Sales grew to ₹4,475 crore in FY24, a 2.21% increase from ₹4,378 crore in FY23. FY23 recorded a robust 44.15% growth from ₹3,038 crore in FY22, driven by higher demand and expanded operational capacity.
Expense Trends: Expenses decreased to ₹3,371 crore in FY24, a 3.91% decline from ₹3,508 crore in FY23. FY23 expenses rose by 54.9% compared to ₹2,265 crore in FY22, indicating improved cost management in the latest fiscal year.
Operating Profit & Margins: Operating profit rose to ₹1,104 crore in FY24, a 26.94% increase over ₹869.87 crore in FY23. OPM improved to 24.43% in FY24 from 19.7% in FY23 but remained below FY22’s 25.1%, showcasing margin recovery.
Profitability Indicators: Net profit increased to ₹667.5 crore in FY24, a 22.15% rise from ₹546.49 crore in FY23. FY22 net profit was ₹509.4 crore. Earnings per share (EPS) grew to ₹6.07 in FY24 from ₹4.97 in FY23, indicating shareholder value growth.
Taxation & Dividend: The tax rate remained stable at 26.05% in FY24, slightly higher than 26.01% in FY23. Dividend payout decreased to 4.12% in FY24 from 5.03% in FY23. FY22 had a tax rate of 25.68% and a dividend payout of 5.4%.
Key Financial Metrics: EBITDA increased to ₹1,148 crore in FY24 from ₹906.72 crore in FY23 and ₹814.5 crore in FY22. Interest expenses rose to ₹111.45 crore in FY24, while depreciation increased to ₹157.88 crore, reflecting continued investments in infrastructure.
Adani Total Gas Stock Performance
Adani Total Gas has demonstrated strong stock performance, with a 31.2% return over the past year. Over three years, it recorded a 26.1% return, and a 33.1% return over five years, reflecting consistent growth and investor confidence in its business model.
| Duration | Return |
| 1 year | 31.2 % |
| 3 years | 26.1 % |
| 5 years | 33.1 % |
Adani Total Gas Shareholding Pattern
The shareholding pattern of Adani Total Gas shows that promoters hold a dominant 74.80% stake, unchanged from March 2022 to September 2024. FIIs’ stake decreased from 17.83% in Mar 2022 to 13.07% in Sep 2024, while public holdings rose significantly.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 74.80% | 74.80% | 74.80% | 74.80% |
| FIIs | 17.83% | 16.32% | 13.13% | 13.07% |
| DIIs | 5.19% | 6.14% | 6.12% | 6.13% |
| Public | 2.18% | 2.75% | 5.93% | 5.99% |
| No. of Shareholders | 1,30,747 | 3,01,530 | 6,31,022 | 6,25,899 |
Adani Total Gas Partnerships and Acquisitions
Adani Total Gas has formed strategic partnerships to enhance its infrastructure and expand its gas distribution network across India. These alliances with energy and industrial firms aim to increase operational efficiency and extend market reach, bolstering growth prospects in the gas sector.
In recent years, Adani Total Gas has focused on acquisitions to strengthen its market position. The company has acquired gas distribution companies to diversify its portfolio and increase coverage, further reinforcing its role in India’s growing energy demand. These acquisitions contribute to both operational scale and market presence.
Additionally, Adani Total Gas has entered into joint ventures with global energy players, facilitating the transfer of technology and expertise in the natural gas sector. These collaborations help improve service delivery and expand the customer base, ensuring the company’s competitive edge in the industry.
Adani Total Gas Peer comparison
Adani Total Gas, with a market cap of ₹74,710.1 crore, faces competition from major players like GAIL (India) (₹1,26,570.67 crore) and Petronet LNG (₹51,097.5 crore). Despite a high P/E ratio of 106.42, its returns have been negative, while Petronet LNG shows strong performance and higher dividend yield.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| GAIL (India) | 192.5 | 126570.67 | 10.97 | 13.97 | 14.66 | -13.16 | 18.75 | 2.86 |
| Adani Total Gas | 679.3 | 74710.1 | 106.42 | 20.46 | 21.2 | -24.91 | -31.24 | 0.04 |
| Petronet LNG | 340.65 | 51097.5 | 13.04 | 22.19 | 26.41 | 1.29 | 53 | 2.94 |
| Gujarat Gas | 502.8 | 34612.26 | 28.25 | 15.03 | 20.51 | -22.75 | 8.95 | 1.13 |
| Indraprastha Gas | 390.1 | 27307.03 | 16.99 | 21.76 | 28.76 | -24.92 | -6.75 | 2.31 |
| Guj.St.Petronet | 357.85 | 20190.3 | 13.49 | 16.06 | 21.46 | 18.65 | 16.94 | 1.4 |
| Mahanagar Gas | 1238.3 | 12231.65 | 10.64 | 27.79 | 36.6 | -27.56 | 3.15 | 2.42 |
Future of Adani Total Gas
The future of Adani Total Gas looks promising as the company focuses on expanding its gas distribution network across India. With growing demand for clean energy, it is well-positioned to benefit from the government’s push for increased natural gas consumption.
Adani Total Gas’ strategic investments in infrastructure and technology improvements will likely enhance operational efficiency and customer service. As it broadens its footprint in both urban and rural areas, the company is poised to capitalize on the growing energy requirements of the nation.
Additionally, Adani Total Gas’ focus on sustainability and renewable energy initiatives may open new growth avenues. As the company continues to explore partnerships and acquisitions, it can diversify its portfolio and strengthen its position in the evolving energy landscape.
How to Invest in Adani Total Gas Share?
To invest in Adani Total Gas shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Adani Total Gas’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Adani Total Gas on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Adani Total Gas – FAQs
Adani Total Gas has a market capitalization of ₹74,710 crore, reflecting its strong presence in the gas distribution sector. The company’s valuation signifies its growth potential and position within India’s expanding energy market, supported by ongoing infrastructure development.
Adani Total Gas is one of the leading players in India’s gas distribution industry, leveraging its extensive network in urban areas. The company is rapidly expanding its customer base, benefiting from India’s growing demand for natural gas and clean energy alternatives.
Adani Total Gas has made strategic acquisitions, including purchasing gas distribution assets in various cities across India. These acquisitions have expanded its customer base, improved infrastructure, and enhanced its ability to serve more regions, further solidifying its market position.
Adani Total Gas is a key player in the natural gas distribution sector, focused on delivering CNG (compressed natural gas) and PNG (piped natural gas) to residential, industrial, and commercial customers. It aims to provide cleaner energy solutions in urban and rural India.
Adani Total Gas is a joint venture between the Adani Group and TotalEnergies, a global energy company. The Adani Group holds a controlling stake, making it the primary owner, while TotalEnergies contributes to its technical expertise and global reach.
The main shareholders of Adani Total Gas are promoters, who hold 74.80% of the company’s shares. Foreign institutional investors (FIIs) own 13.07%, while domestic institutional investors (DIIs) hold 6.13%. The public holds 5.99%, with the number of shareholders steadily increasing.
Adani Total Gas operates in the energy sector, specifically in natural gas distribution. The company focuses on providing CNG and PNG to residential, industrial, and commercial users, contributing to India’s transition towards cleaner and more sustainable energy sources.
Adani Total Gas has shown strong growth in its order book, driven by ongoing infrastructure expansion in new cities and towns. This growth reflects the company’s commitment to increasing its customer base and strengthening its position in the gas distribution market.
To invest in Adani Total Gas shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Adani Total Gas has a high P/E ratio of 106, suggesting it may be overvalued relative to its earnings. However, its strong market position, growth prospects in the gas distribution industry, and the shift toward clean energy may justify the premium valuation.
The future of Adani Total Gas looks promising, driven by India’s increasing focus on clean energy and natural gas infrastructure. The company is expanding its distribution network, which positions it well for continued growth in both urban and rural markets.
Disclaimer: the above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. the securities quoted are exemplary and are not recommendatory.
