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Gas Distribution Sector in India : Stock-wise Analysis for 2025

Gas Distribution Stocks

Disclaimer : We don’t directly give advice to buy or sell shares. We provide news and analysis on share market which can provide good KNOWLEDGE only, so invest at your own risk. 

In this blog we are going to get info of full stock analysis of Gas distribution sector in India. You will get stock-wise analysis so read it full.

So, let’s begin.

Gas Distribution Companies listed in India Stocks Info :

Company NameStock SymbolTypeRoleMarket Cap (₹ Cr)Net Profit (₹ Cr, FY23/24)Stock Price (₹, approx.)
Indraprastha Gas Ltd (IGL)NSE: IGLPublicMajor CGD operator in Delhi-NCR~35,000~1,900 (FY24)~450
Gujarat Gas Ltd (GGL)NSE: GUJGASLTDPublicLargest CGD company by volume~45,000~1,300 (FY24)~550
Mahanagar Gas Ltd (MGL)NSE: MGLPublicCGD in Mumbai and surrounding areas~12,000~800 (FY24)~1,300
Adani Total Gas Ltd (ATGL)NSE: ATGLPublicFast-growing CGD in 20+ cities, JV with TotalEnergies~50,000~700 (FY24)~1,000
Torrent Gas (via Torrent Power)NSE: TORNTPOWERPublicCGD operator in multiple cities~60,000*~1,500* (FY24, consolidated)~1,400*
IRM Energy LtdNSE: IRMENERGYPublicNewly listed (2023 IPO), active in Himachal & Gujarat~2,500~100 (FY24)~500

Financial Analysis & Fundamental Analysis of Gas Distribution Companies of India :

Financial Metrics of Indian CGD Companies (Publicly Listed)

CompanyDebt/EquityP/E (TTM)P/BROE (%)ROA (%)Div Yield (%)EPS (₹)
Indraprastha Gas (IGL)0.0518.53.217.312.12.125.4
Gujarat Gas (GGL)0.1234.25.816.89.50.716.1
Mahanagar Gas (MGL)0.0815.02.516.511.22.886.7
Adani Total Gas (ATGL)0.3070.412.117.26.30.27.2
Torrent Power*0.9040.14.311.05.80.535.6
IRM Energy0.2525.33.614.28.10.0 (No Dividend)19.8

Key Insights: Financial Health & Performance of Indian CGD Companies

This table compares six major publicly listed City Gas Distribution (CGD) companies in India across critical financial metrics. Below are the key takeaways:


1. Debt Levels: Who’s Leveraged & Who’s Debt-Averse?

  • Lowest Debt:
    • IGL (0.05) and MGL (0.08) have minimal debt, indicating strong balance sheets.
    • These companies rely more on equity, reducing financial risk.
  • Highest Debt:
    • Torrent Power (0.90) has significant debt due to its power business (CGD segment is smaller).
    • ATGL (0.30) has moderate leverage, likely funding aggressive expansion.

👉 Takeaway: IGL and MGL are safer bets for conservative investors, while ATGL and Torrent Power carry higher debt risk.


2. Valuation: Are These Stocks Overpriced or Undervalued?

  • P/E Ratio (Price-to-Earnings):
    • ATGL (70.4) trades at a huge premium—investors expect high growth.
    • MGL (15.0) is the cheapest, possibly undervalued given its stable earnings.
    • Gujarat Gas (34.2) is moderately priced but has a high P/B (5.8), suggesting overvaluation.
  • P/B Ratio (Price-to-Book):
    • ATGL (12.1) and GGL (5.8) trade far above book value—market expects future profitability.
    • MGL (2.5) is the most reasonably priced relative to assets.

👉 Takeaway: ATGL is expensive (growth stock), while MGL looks like a value pick.


3. Profitability: Which Companies Generate the Best Returns?

  • ROE (Return on Equity):
    • IGL (17.3%) and ATGL (17.2%) lead—efficient in generating profits from shareholders’ money.
    • Torrent Power (11.0%) lags due to capital-intensive power operations.
  • ROA (Return on Assets):
    • IGL (12.1%) and MGL (11.2%) are most efficient in using assets to generate earnings.
    • ATGL (6.3%) has lower ROA, likely due to expansion costs.

👉 Takeaway: IGL and MGL are the most efficient operators, while ATGL sacrifices short-term returns for growth.


4. Dividends & Earnings: Who Rewards Shareholders?

  • Dividend Yield:
    • MGL (2.8%) and IGL (2.1%) are the best dividend payers.
    • ATGL (0.2%) and IRM Energy (0%) prioritize reinvestment over dividends.
  • EPS (Earnings Per Share):
    • MGL (₹86.7) has the highest EPS, benefiting from Mumbai’s high gas demand.
    • ATGL (₹7.2) has the lowest, reflecting reinvestment and expansion costs.

👉 Takeaway: Income investors should prefer MGL & IGL, while growth investors may bet on ATGL & IRM Energy.


5. Torrent Power vs. Pure-Play CGD Companies

  • Torrent Power’s metrics (D/E: 0.90, ROE: 11.0%) reflect its diversified power business, not just CGD.
  • Compared to pure-play CGD firms like IGL and MGL, it carries higher debt and lower profitability.

👉 Takeaway: Investors seeking pure CGD exposure should focus on IGL, MGL, or ATGL instead.


Final Verdict: Who Stands Out?

Best for…CompanyWhy?
Low-risk investorsIGL, MGLLow debt, high ROE, good dividends.
Growth investorsATGL, IRMHigh P/E, expansion focus.
Dividend seekersMGL, IGLHighest yields.
Value investorsMGLLow P/E, high ROE.

Piotroski Scores for City Gas Distribution Companies (FY24)

CompanyScore (0-9)Key StrengthsKey Weaknesses
Indraprastha Gas (IGL)8High ROA (12.1%), strong cash flow, low debtMargin pressure (rising gas costs)
Gujarat Gas (GGL)7Robust volume growth, improving liquidityHigh P/B (5.8), debt increased slightly
Mahanagar Gas (MGL)8Zero net debt, high dividends, stable ROEAsset turnover declined slightly
Adani Total Gas (ATGL)6Rapid expansion, improving marginsHigh leverage (D/E: 0.3), negative FCF
Torrent Power5Consolidated profit growthHigh debt (D/E: 0.9), low ROA (5.8%)
IRM Energy4IPO-funded growth, low debtNegative OCF, low ROA (8.1%)

Key Insights for Piotroski F Score of Gas Distribution Companies of India :

  1. Top Performers (7+ Score):
    • IGL (8) and MGL (8) are financially robust—low debt, high cash flow, and efficient operations.
    • GGL (7) benefits from volume growth but carries valuation risks.
  2. Growth vs. Stability Trade-Off:
    • ATGL (6) sacrifices short-term financial health for expansion (high capex).
    • Torrent Power (5) suffers from power segment drag (not pure-play CGD).
  3. Weakest Link:
    • IRM Energy (4) struggles with cash flow post-IPO but has growth potential.

Credit Ratings for Indian Gas Distribution Companies

CompanyRating AgencyLong-Term RatingOutlookKey StrengthsKey Risks
Indraprastha Gas (IGL)CRISILAAAStableStrong monopoly in Delhi-NCR, zero debtRegulatory pricing risks
Gujarat Gas (GGL)ICRAAA+PositivePan-India presence, volume growthExposure to spot LNG price volatility
Mahanagar Gas (MGL)CAREAAAStableHigh cash reserves, low leverageLimited geographical diversification
Adani Total Gas (ATGL)INDIA RATINGSAAStableBacked by Adani & TotalEnergiesAggressive capex, high leverage
Torrent PowerICRAAAStableDiversified revenue (Power + CGD)High consolidated debt (D/E ~0.9)
IRM EnergyCAREA+StablePost-IPO equity infusionSmall scale, negative cash flows

Final words with Credit Ratings :

  • Safest Bets: IGL & MGL (AAA, stable).
  • Growth Play: ATGL (but watch debt).
  • Riskiest: IRM Energy (needs turnaround).

Conclusion :

City Gas Distribution Companies: Investment Analysis (2024-25 Outlook)

CompanyFuture ProspectsFinancial StrengthShort-TermLong-TermBullish Case Why Buy(✓)Bearish Case Why Avoid (✗)
IGLStable demand in Delhi-NCR; limited expansion scopeStrong (AAA, debt-free)NeutralHoldMonopoly, high dividendsRegulatory pricing risks, saturation
Gujarat GasVolume growth from industrial demand; LNG price sensitivityGood (AA+)BuyBuyPan-India reach, margin recoveryLNG volatility, competition
MGLSteady Mumbai demand; potential suburban expansionVery Strong (AAA)HoldBuyCash-rich, high ROELimited growth geography
Adani Total GasAggressive expansion (20+ cities); EV charging synergyModerate (AA, high leverage)SpeculativeBuyBacked by Adani, green energy pushDebt risk, execution challenges
Torrent PowerCGD + power synergy; stable cash flowsModerate (AA, high D/E)HoldHoldDiversified revenuePower segment drags returns
IRM EnergyHigh growth potential in new areas (Gujarat/Himachal)Weak (A+)AvoidSpeculativePost-IPO growth potentialNegative cash flows, small scale

Key Investment Insights for Gas Distribution Companies of India :

1. Top Picks for 2025

  • Long-Term Buy:
    • Gujarat Gas (GGL): Industrial demand + LNG infrastructure.
    • Adani Total Gas (ATGL): High-risk, high-reward expansion play.
  • Safe Dividend Stocks:
    • IGL & MGL: Monopolies with stable cash flows.

2. Avoid/Speculative

  • IRM Energy: Too early; wait for cash flow turnaround.
  • Torrent Power: Only if you want power sector exposure.

3. Bullish Triggers

  • Policy Support: Govt’s push for cleaner fuels (CNG, CBG).
  • Urbanization: Rising CNG demand in cities.
  • EV Synergy: ATGL’s EV charging stations (future growth).

4. Bearish Risks

  • Regulatory Risks: Gas price controls hurting margins.
  • Debt Concerns: ATGL/Torrent’s high leverage.
  • Competition: New CGD licenses in existing areas.

Final Recommendations

  • Conservative Investors: Stick with IGL/MGL (AAA, dividends).
  • Growth Seekers: Bet on ATGL/Gujarat Gas (higher volatility).
  • Avoid: IRM Energy until profitability improves.

So, this is about Gas Distribution companies of India and their stocks analysis.

Happy Investing

Extra Reference :

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