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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Indraprastha Gas Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:01 pm

Market Cap 21,808 Cr.
Current Price 311
High / Low571/306
Stock P/E13.6
Book Value 134
Dividend Yield2.89 %
ROCE28.8 %
ROE21.8 %
Face Value 2.00
PEG Ratio1.99

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Indraprastha Gas Ltd

Competitors of Indraprastha Gas Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Indraprastha Gas Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,3051,4461,5511,2571,8312,2152,4063,1943,5543,7113,6873,4073,459
Expenses8989451,0598771,3011,7461,9052,5763,0263,2823,2212,7652,802
Operating Profit407501492381530470500618528428466642657
OPM %31%35%32%30%29%21%21%19%15%12%13%19%19%
Other Income6626283077307731110566546134
Interest2343335233322
Depreciation717576788084758691929499102
Profit before tax399449440330525414498560543389435587686
Tax %23%25%25%26%24%25%27%25%23%28%24%25%22%
Net Profit308335331244401309362421416278330438535
EPS in Rs4.404.784.733.495.724.415.176.015.943.984.716.267.64

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,5173,3673,9143,6813,6863,8154,5355,7656,4854,9417,71014,14614,263
Expenses1,8832,6033,1312,8872,9102,8513,4104,5064,9493,4465,81612,08812,069
Operating Profit6347647837947759641,1251,2591,5361,4951,8942,0582,194
OPM %25%23%20%22%21%25%25%22%24%30%25%15%15%
Other Income8122134296590144152149213260301
Interest49614530101222022252710
Depreciation143187220149156167181201252290317363387
Profit before tax4505285406496388611,0321,2001,4161,3311,7661,9282,097
Tax %32%33%33%33%34%34%35%34%20%24%26%25%
Net Profit3063543604384195716717871,1371,0061,3151,4451,581
EPS in Rs4.385.065.156.255.998.169.5811.2416.2414.3718.7820.6422.59
Dividend Payout %23%22%21%19%20%21%21%21%17%25%29%63%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)15.69%1.69%21.67%-4.34%36.28%17.51%17.29%44.47%-11.52%30.72%9.89%
Change in YoY Net Profit Growth (%)0.00%-13.99%19.97%-26.00%40.61%-18.76%-0.23%27.19%-55.99%42.24%-20.83%

Indraprastha Gas Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:19%
3 Years:42%
TTM:1%
Compounded Profit Growth
10 Years:17%
5 Years:18%
3 Years:20%
TTM:2%
Stock Price CAGR
10 Years:14%
5 Years:-5%
3 Years:-14%
1 Year:-20%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:21%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital140140140140140140140140140140140140140
Reserves1,3531,6231,9582,3762,7873,3733,9904,9225,7326,7966,9478,4129,243
Borrowings458352145000096113108838174
Other Liabilities6827398338681,1641,4191,8232,0172,6063,4134,6144,4924,819
Total Liabilities2,6342,8553,0763,3844,0914,9325,9537,1768,59110,45711,78313,12514,276
Fixed Assets1,8471,8951,9562,0192,1172,4322,8773,5574,3215,0025,7346,5996,805
CWIP2912622542673523864787778471,3791,4341,3961,479
Investments1431172912596771,1481,5442581,8261,9766771,1581,644
Other Assets3525805758399459661,0542,5841,5982,1013,9393,9724,348
Total Assets2,6342,8553,0763,3844,0914,9325,9537,1768,59110,45711,78313,12514,276

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +6436486646539468791,1571,3611,5461,8982,2311,536
Cash from Investing Activity +-362-300-364-175-1,114-717-1,121-521-1,826-1,585-841-1,095
Cash from Financing Activity +-218-241-327-256-160-84-169-243-297-328-1,359-334
Net Cash Flow63106-27223-32878-133597-577-1531107

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow634.00306.00431.00649.00775.00964.001.001.00-95.00-112.00-107.00-81.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days192023251918141019252327
Inventory Days76710108658422
Days Payable322630264850352269653237
Cash Conversion Cycle-6019-19-23-15-7-41-37-6-8
Working Capital Days-44-32-36-32-62-67-75-82-142-113-78-71
ROCE %32%29%31%27%32%31%29%29%24%26%27%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters45.00%45.00%45.00%45.00%45.00%45.00%45.00%45.00%45.00%45.00%45.00%45.00%
FIIs21.88%20.23%19.88%20.34%20.99%21.76%21.27%21.94%20.94%17.91%16.81%16.16%
DIIs16.05%16.68%16.90%16.79%20.10%19.53%20.28%20.17%21.06%22.74%24.22%25.10%
Government5.00%5.00%5.00%5.00%5.18%5.18%5.18%5.18%5.18%5.00%5.00%5.00%
Public12.07%13.09%13.22%12.87%8.74%8.53%8.27%7.72%7.83%9.36%8.96%8.74%
No. of Shareholders2,28,8852,93,1173,70,1903,69,3923,40,9153,22,3453,05,9612,72,0652,70,6873,16,3402,96,5692,90,378

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Flexicap Fund - Regular Plan8,500,0000.833256,536,9252024-11-2030.03%
Mirae Asset Emerging Bluechip Fund6,536,9250.89249.946,536,9252024-11-200%
PGIM India Midcap Opportunities Fund4,680,2921.97178.956,536,9252024-11-20-28.4%
Mirae Asset Midcap Fund4,115,1081.34157.346,536,9252024-11-20-37.05%
Nippon India Growth Fund3,452,2650.691326,536,9252024-11-20-47.19%
Kotak Equity Arbitrage Fund - Regular Plan3,427,8750.45131.066,536,9252024-11-20-47.56%
Kotak Equity Opportunities Fund - Regular Plan3,300,0000.83126.186,536,9252024-11-20-49.52%
PGIM India Flexi Cap Fund2,847,9041.93108.896,536,9252024-11-20-56.43%
Kotak Balanced Advantage Fund2,478,0910.6494.756,536,9252024-11-20-62.09%
DSP Equity Opportunities Fund1,796,7830.7868.76,536,9252024-11-20-72.51%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)28.3623.4221.4616.7517.84
Diluted EPS (Rs.)28.3623.4221.4616.7517.84
Cash EPS (Rs.)29.3824.9922.7719.1019.25
Book Value[Excl.RevalReserv]/Share (Rs.)137.85113.30108.3790.4976.54
Book Value[Incl.RevalReserv]/Share (Rs.)137.85113.30108.3790.4976.54
Revenue From Operations / Share (Rs.)200.00202.08110.1470.5892.65
PBDIT / Share (Rs.)37.4932.0429.4022.8323.75
PBIT / Share (Rs.)31.5826.8524.8718.6820.15
PBT / Share (Rs.)31.4526.7024.6818.5220.04
Net Profit / Share (Rs.)23.4619.8018.2414.9515.64
NP After MI And SOA / Share (Rs.)28.3623.4221.4616.7517.84
PBDIT Margin (%)18.7415.8526.6832.3325.63
PBIT Margin (%)15.7913.2822.5726.4621.75
PBT Margin (%)15.7213.2122.4026.2321.62
Net Profit Margin (%)11.739.7916.5521.1816.88
NP After MI And SOA Margin (%)14.1711.5919.4823.7319.25
Return on Networth / Equity (%)20.6020.6719.8018.5123.31
Return on Capital Employeed (%)21.8022.4021.8119.5224.53
Return On Assets (%)13.9512.9913.5312.9516.55
Asset Turnover Ratio (%)1.041.240.790.610.97
Current Ratio (X)1.070.991.211.321.39
Quick Ratio (X)1.060.981.191.301.36
Dividend Payout Ratio (NP) (%)0.0078.9816.7716.7116.21
Dividend Payout Ratio (CP) (%)0.0064.6513.8513.3913.49
Earning Retention Ratio (%)0.0021.0283.2383.2983.79
Cash Earning Retention Ratio (%)0.0035.3586.1586.6186.51
Interest Coverage Ratio (X)286.22211.77155.77140.90204.78
Interest Coverage Ratio (Post Tax) (X)180.10131.8897.6493.31135.84
Enterprise Value (Cr.)28027.4527361.7724730.8634623.7125039.56
EV / Net Operating Revenue (X)2.001.933.217.013.86
EV / EBITDA (X)10.6812.2012.0221.6715.06
MarketCap / Net Operating Revenue (X)2.152.123.387.244.20
Retention Ratios (%)0.0021.0183.2283.2883.78
Price / BV (X)3.133.783.445.645.08
Price / Net Operating Revenue (X)2.152.123.387.244.20
EarningsYield0.060.050.050.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indraprastha Gas Ltd as of November 21, 2024 is: 408.76

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Indraprastha Gas Ltd is Undervalued by 31.43% compared to the current share price 311.00

Intrinsic Value of Indraprastha Gas Ltd as of November 21, 2024 is: 436.65

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Indraprastha Gas Ltd is Undervalued by 40.40% compared to the current share price 311.00

Last 5 Year EPS CAGR: 6.82%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 28.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -69.50, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -12.67, which is a positive sign.
  4. The company has higher reserves (4,577.85 cr) compared to borrowings (116.15 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (5.46 cr) and profit (282.62 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Indraprastha Gas Ltd:
      1. Net Profit Margin: 11.73%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 21.8% (Industry Average ROCE: 0.59%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 20.6% (Industry Average ROE: 0.49%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 180.1
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.06
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 13.6 (Industry average Stock P/E: 0)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    Indraprastha Gas Ltd. is a Public Limited Listed company incorporated on 23/12/1998 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L23201DL1998PLC097614 and registration number is 097614. Currently Company is involved in the business activities of Manufacture of gas; distribution of gaseous fuels through mains. Company’s Total Operating Revenue is Rs. 7709.96 Cr. and Equity Capital is Rs. 140.00 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    LPG/CNG/PNG/LNG Bottling/DistributionIGL Bhawan, Plot No. 4, Community Centre, New Delhi Delhi 110022investors@igl.co.in
    http://www.iglonline.net
    Management
    NamePosition Held
    Mr. Kamal Kishore ChatiwalManaging Director
    Mr. Pawan KumarDirector - Commercial
    Mr. R K JainDirector
    Mr. Ashish KundraDirector
    Mr. Rajib Sekhar SahooDirector
    Mr. Ramesh Narain MisraDirector
    Mrs. Saroj BalaDirector
    Mr. Deepak MishraDirector
    Dr. Shyam AgrawalDirector
    Mr. N RamakrishnanDirector

    FAQ

    What is the latest intrinsic value of Indraprastha Gas Ltd?

    The latest intrinsic value of Indraprastha Gas Ltd as on 21 November 2024 is ₹408.76, which is 31.43% higher than the current market price of ₹311.00.

    What is the Market Cap of Indraprastha Gas Ltd?

    The Market Cap of Indraprastha Gas Ltd is 21,808 Cr..

    What is the current Stock Price of Indraprastha Gas Ltd as on 21 November 2024?

    The current stock price of Indraprastha Gas Ltd as on 21 November 2024 is ₹311.

    What is the High / Low of Indraprastha Gas Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Indraprastha Gas Ltd stocks is 571/306.

    What is the Stock P/E of Indraprastha Gas Ltd?

    The Stock P/E of Indraprastha Gas Ltd is 13.6.

    What is the Book Value of Indraprastha Gas Ltd?

    The Book Value of Indraprastha Gas Ltd is 134.

    What is the Dividend Yield of Indraprastha Gas Ltd?

    The Dividend Yield of Indraprastha Gas Ltd is 2.89 %.

    What is the ROCE of Indraprastha Gas Ltd?

    The ROCE of Indraprastha Gas Ltd is 28.8 %.

    What is the ROE of Indraprastha Gas Ltd?

    The ROE of Indraprastha Gas Ltd is 21.8 %.

    What is the Face Value of Indraprastha Gas Ltd?

    The Face Value of Indraprastha Gas Ltd is 2.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indraprastha Gas Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE