Indraprastha Gas (IGL)

FairStock Score: 79/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Indraprastha Gas at ₹151.70, market cap ₹21,238 Cr, looks like a Stalwart to me, not a fast grower. The moat evidence is in the returns: ROCE 20.85% and ROE 13.93% are respectable for a gas supplier, and Debt/Equity of 0.01 means the balance sheet barely uses leverage. It generated ₹680 Cr free cash flow, pays a 3.10% dividend yield, and carries a Piotroski F-Score of 8/9 plus Altman Z-Score of 3.02. Those are signs of financial durability. The 5-year revenue CAGR of 18.15% and latest-quarter sales of ₹4,068 Cr show demand growth, but profit growth of -47.69% is the red flag; latest-quarter net profit was ₹392 Cr. I want to know whether that profit decline is temporary or evidence of margin pressure. Valuation is mixed. P/E 16.62 and P/B 1.84 are not demanding for a steady distributor, and DCF intrinsic value of ₹190.75 suggests upside. But Graham Number of ₹142.37 gives a margin of safety of -20.01%, meaning the market price is above my conservative asset-earnings floor. The 52-week range of ₹139.25 to ₹219.10 shows the stock has corrected but can still swing. Promoter holding of 45% aligns some interests. EV/EBITDA of -79.81 is unusual and needs context; I would not ignore it. Overall, IGL has a low-debt business with decent returns and cash generation, but earnings have cracked. At this price, I would call it a watchlist Stalwart: buy only if profit growth stabilizes and valuation offers a better Graham-style cushion. The FairStock Score of 79/100 STEADY supports patience, not euphoria.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer