Adani Total Gas share price target 2024, 2025, 2026, 2027, 2030 prediction: Buy or Sell?

Adani Total Gas is one of the leading players in the city gas distribution (CGD) industry in India, with a joint venture partnership with the French energy giant Total. Adani Total Gas has been witnessing robust growth in its volumes, revenues, and profits, driven by the increasing demand for natural gas in India, the government’s support for cleaner fuels, and the company’s expansion into new geographies and markets. In this article, we will look at the Adani Total Gas share price target 2024, 2025, 2026, 2027, 2030 prediction.

In this blog post, we will analyze Adani Total Gas’s business model, financial performance, competitive position, growth opportunities, strengths, weaknesses, opportunities, and threats, and provide some key insights for investors who are interested in this stock.

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Adani Total Gas share price target 2024, 2025, 2026, 2027, 2030

Adani Total Gas share price target 2024

Adani Total Gas share price target 2024: In 2024, market projections suggest that Adani Total Gas’ share price is expected to have a minimum target of ₹1,275, a maximum target of ₹1,630, and an average target of ₹1,453.

Adani Total Gas share price target 2025

Adani Total Gas share price target 2025: For 2025, the projected Adani Total Gas share price targets include a minimum of ₹1,594, a maximum of ₹2,038, and an average of ₹1,816.

Adani Total Gas share price target 2026

Adani Total Gas share price target 2026: In 2026, market expectations suggest that Adani Total Gas’ share price is anticipated to range with a minimum target of ₹1,992, a maximum target of ₹2,547, and an average target of ₹2,270.

Adani Total Gas share price target 2030

Adani Total Gas share price target 2030: Looking ahead to 2030, the projected Adani Total Gas share price targets indicate a minimum target of ₹4,864, a maximum target of ₹6,218, and an average of ₹5,541.

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Adani Total Gas share price Today Live Chart and History

Adani Total Gas share: Buy or Sell?

Competitors of Adani Total Gas Stock

India’s City Gas Distribution (CGD) sector is marked by robust competition, where Adani Total Gas stands as a notable player amidst formidable rivals such as GAIL, Gujarat Gas, Indraprastha Gas, and Mahanagar Gas. Each of these competitors brings unique strengths to the table, shaping the dynamics of the industry.

• GAIL (India) Ltd: As India’s premier natural gas entity, GAIL leads in gas transmission, marketing, processing, and distribution. Operating across six Geographical Areas (GAs) in seven states, its CGD networks span 18 districts. With a remarkable market capitalization of Rs 1.02 lakh crore as of December 14, 2023, GAIL is a prominent figure on both the NSE and BSE.
• Gujarat Gas Ltd: Renowned for its sheer scale, Gujarat Gas is India’s largest CGD company in terms of customer base and geographic coverage. It operates in 23 GAs, encompassing 71 districts across eight states and union territories. Its market capitalization stands at Rs 47,837 crore as of the same date.
• Indraprastha Gas Ltd: Dominating the National Capital Region, Indraprastha Gas oversees CGD networks in several key areas including Delhi and Gurugram. The company’s market capitalization is noted at Rs 37,392 crore.
• Mahanagar Gas Ltd: With exclusive authorization in Mumbai and adjacent districts in Maharashtra, Mahanagar Gas holds a market capitalization of Rs 12,128 crore.

A comparative analysis of financial and operational metrics for FY22 reveals Adani Total Gas’s position relative to these competitors. While trailing in revenue, EBITDA, PAT, EPS, and volume, Adani Total Gas excels in ROE, ROCE, PNG customer base, number of CNG stations, and EV charging points. Notably, Adani Total Gas demonstrates a higher growth rate across revenue, EBITDA, and PAT compared to its peers, signaling robust execution capabilities and strategic expansion.

Significance of Analysis: This analysis provides investors with a comprehensive view of Adani Total Gas’s standing in the competitive CGD industry landscape. It elucidates the company’s strengths, challenges, and growth trajectory in comparison to its key competitors. Such insights are crucial for investors to gauge the market opportunities, potential risks, and the overall viability of Adani Total Gas as an investment choice in the evolving CGD sector.

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Growth Opportunity for Adani Total Gas Stock

Adani Total Gas is poised for significant growth in India’s burgeoning City Gas Distribution (CGD) industry. This optimism is rooted in the country’s increasing shift towards natural gas, projected to rise from 6.2% of India’s primary energy mix in 2019 to 15% by 2030. Specifically, the natural gas demand in India is forecasted to expand at a Compound Annual Growth Rate (CAGR) of 7.1% from 2019 to 2030, culminating in a demand of 606 MMSCMD, up from 166 MMSCMD. The CGD sector is anticipated to contribute 24% of this demand by 2030, a significant increase from 16% in 2019.

Several government initiatives bolster this growth trajectory. Notable among them is the Pradhan Mantri Ujjwala Yojana (PMUY), targeting clean cooking fuel provision to 80 million households, and the City Gas Distribution (CGD) bidding rounds, which have allocated 229 Geographical Areas (GAs) across 406 districts. Furthermore, the Gas Infrastructure Development Cess (GIDC) and National Tariff Policy are key enablers, offering financial support and a uniform tariff framework for the CGD sector, respectively.

Adani Total Gas, with its diverse portfolio encompassing urban and rural GAs and catering to a broad customer base, is strategically positioned to capitalize on these opportunities. The company’s investments in expanding its network, including new PNG connections, CNG stations, and EV charging points, alongside ventures into green hydrogen and biogas, are noteworthy. Its partnership with global energy giant Total enhances its capabilities with access to cutting-edge technology and expertise. Operational efficiency, customer service enhancements, and digitalization initiatives further strengthen its competitive edge.

The company’s ambitious growth projections for the next five years reflect its strong market position:

• Revenue is expected to increase from Rs 4,683 crore in FY23 to Rs 15,445 crore in FY27.
• EBITDA is projected to grow from Rs 1,814 crore to Rs 5,999 crore over the same period.
• Profit After Tax (PAT), Earnings Per Share (EPS), Return on Equity (ROE), and Return on Capital Employed (ROCE) are all forecasted to see substantial growth.
• Customer base and infrastructure, including PNG customers, CNG stations, and EV charging points, are set to expand significantly.

These projections, derived from company reports and industry analyses, suggest a CAGR of over 27% across key metrics from FY23 to FY27, surpassing industry averages and underscoring Adani Total Gas’s robust fundamentals and growth prospects.

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Strengths of Adani Total Gas Stock

Adani Total Gas emerges as a formidable player in India’s City Gas Distribution (CGD) sector, presenting itself as a compelling investment choice due to its numerous strengths:

1. Strategic Partnership with Total: This 50:50 joint venture with Total, a global energy titan, endows Adani Total Gas with a wealth of benefits. It gains from Total’s vast experience in natural gas, LNG, and renewable energy sectors, along with its operational excellence and financial prowess. This collaboration extends beyond technical expertise, allowing Adani Total Gas to tap into Total’s extensive network in both upstream and downstream natural gas segments and renewable energy resources.
2. Market Leadership and Pan-India Presence: Adani Total Gas boasts a significant market share, with over 10% in volume and 15% in geographic reach. It operates in 19 GAs, with 13 additional GAs under development, spanning 92 districts across 21 states and union territories. Partnerships with IOC and BPCL further solidify its presence, catering to a diverse customer base including over 7 lakh PNG customers, 460 CNG stations, and 104 EV charging points.
3. Robust Financial Performance and Profitability: Despite challenges like the Covid-19 pandemic, Adani Total Gas has shown remarkable financial resilience. The fiscal year 2023 witnessed a revenue surge to INR 4,683 crore (up 46%), an EBITDA of INR 907 crore (up 11%), and a net profit of INR 510 crore (up 10%). However, it also saw a decrease in net profit margin and return on equity, indicating areas for strategic focus.
4. Innovation and Diversification: Adani Total Gas is at the forefront of innovation, launching India’s first green hydrogen blending pilot in Ahmedabad and planning to increase the blending percentage and expand to other GAs. It’s also venturing into biogas production from agricultural waste and setting up LNG terminals and regasification units for remote areas. Additionally, the company is enhancing customer experience with smart metering, mobile refueling units, and digital payment facilities.

Significance of Analysis: This analysis underscores Adani Total Gas’s strategic positioning in the CGD market, highlighting its robust partnership, expansive market reach, solid financial standing, and innovative strides. These strengths not only reinforce its role as a market leader but also spotlight potential areas for growth and development, offering a comprehensive view for investors and industry observers.

Weaknesses of Adani Total Gas Stock

Adani Total Gas, while positioned strongly in the CGD sector, confronts certain weaknesses that could potentially impede its growth and present risks to investors:

1. High Valuation and Volatility: Adani Total Gas’s stock has experienced an extraordinary surge, escalating over 1,100% from INR 87.85 in March 2020 to INR 1,679 in June 2023. However, this rapid growth raises concerns about sustainability. As of December 2023, its price-to-earnings (PE) ratio is 202.24, substantially surpassing the industry average of 28.75 and the Nifty 50 average of 29.17. Similarly, the price-to-book value (PB) ratio stands at 34.15, greatly exceeding industry and Nifty 50 averages. These high valuation metrics suggest a potential overvaluation, which may not be maintainable long-term. Additionally, the stock’s volatility, influenced by various factors including strategic partnerships, project launches, and market sentiment, adds to the risk profile.
2. Regulatory and Environmental Risks: Operating in a tightly regulated sector, Adani Total Gas must adhere to a myriad of regulations set by the PNGRB, the Ministry of Petroleum and Natural Gas, among others. Regulatory shifts, such as gas price revisions, gas supply allocations, marketing exclusivity extensions, and GST implications, pose significant risks. Environmental and social challenges, including land acquisition, pipeline safety, and customer satisfaction, are also pertinent concerns. Moreover, the broader transition towards low-carbon energy sources and climate change implications could impact the company’s business model and profitability.
3. Dependence on the Adani Group: As a subsidiary of the Adani Group, Adani Total Gas relies heavily on the conglomerate for natural gas supply, CGD network development, financial and operational support, and brand enhancement. While this association brings certain advantages, it also ties the company’s fortunes to the broader challenges faced by the Adani Group. Issues like debt burden, corporate governance, legal disputes, and reputational concerns could indirectly affect Adani Total Gas.

Summary of Analysis: This section highlights critical vulnerabilities of Adani Total Gas, including its high stock valuation and market volatility, regulatory and environmental risks, and its dependence on the broader Adani Group. Understanding these weaknesses is crucial for investors to make informed decisions and assess potential risks associated with investing in Adani Total Gas.

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SWOT Analysis of Adani Total Gas Stock

A SWOT analysis offers a comprehensive view of Adani Total Gas, encompassing its strengths, weaknesses, opportunities, and threats. This analytical framework aids in deciphering the internal and external elements influencing the company’s performance and future prospects. Additionally, it guides the development of strategic plans to achieve the company’s objectives.

Summary Table of SWOT Analysis:

Analysis Summary:

This SWOT analysis presents a structured evaluation of Adani Total Gas, factoring in its internal capabilities and market environment. Key strengths like the Total partnership and market leadership are offset by challenges like stock volatility and regulatory risks. Opportunities for growth in the natural gas sector are tempered by external threats, including competitive pressures and shifting environmental policies. The table format provides an easily digestible overview for stakeholders to understand the company’s strategic position.

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Adani Total Gas Company Financials

The financial performance of Adani Total Gas for the fiscal year 2023 demonstrates robust growth in revenue and profitability, indicating a strong market position despite the pandemic’s challenges. Here’s a breakdown of the key components from the income statement:

1. Revenue Growth: The company’s revenue from operations saw a significant increase of 46%, amounting to INR 4,683 crore. This growth is primarily attributed to higher volumes and prices of natural gas sold, reflecting an expanding customer base and favorable market conditions.
2. Other Income: There was a substantial 55% decrease in other income, primarily due to lower interest and dividend incomes. This suggests a shift in non-operational income streams.
3. Total Income: The total income rose by 44%, indicating overall healthy growth in the company’s earnings.
4. Costs and Expenses:
   • Cost of Materials: The cost of materials consumed spiked by 72%, which can be attributed to the increased cost of natural gas procurement.
   • Employee Benefits: A modest increase of 7% in employee benefits expense indicates a controlled growth in workforce-related expenses.
   • Finance Costs: A noteworthy 21% decrease in finance costs could be due to efficient debt management and favorable interest rates.
   • Depreciation and Amortization: An 11% rise in this expense category is linked to the capital expenditure for expanding the CGD network.
   • Other Expenses: Increased by 13%, possibly due to higher administrative and selling expenses.
5. Profitability:
   • Profit Before Tax (PBT): PBT grew by 36%, a healthy indicator of operational efficiency and revenue growth.
   • Tax Expense: The 39% increase in tax expense aligns with higher profits.
   • Profit After Tax (PAT): PAT saw a 35% increase, solidifying the company’s bottom-line growth.
   • Earnings Per Share (EPS): The 10% increase in EPS is a positive sign for shareholders, reflecting higher profitability.
6. Other Comprehensive Income: A 200% decrease in other comprehensive income, primarily due to actuarial losses on defined benefit plans, slightly offsets the overall financial growth.
7. Total Comprehensive Income: Despite the dip in other comprehensive income, the total comprehensive income increased by 34%, underscoring the company’s overall strong financial performance.

Comparative Analysis with Competitors and Industry Averages:

When compared with competitors and industry averages (as per data from Google Finance and Moneycontrol), Adani Total Gas’s financials highlight certain aspects:

• High Revenue Growth: The company outperforms many peers in revenue growth, indicative of its strong market position and effective business strategies.
• Operational Efficiency: The decrease in finance costs and controlled growth in employee expenses reflect operational efficiency.
• Profitability: The substantial increase in PBT and PAT positions the company favorably against competitors, showcasing its profitability in a challenging market environment.
• Valuation Concerns: Despite strong financial performance, the high valuation and volatility of the stock (as previously discussed) remain areas of concern for investors.

Summary: Adani Total Gas’s financial performance for FY 2023 reveals significant growth in revenue and profitability, with efficient operational management and expanding market presence. However, it is essential to consider these results in the context of the company’s high stock valuation and the broader competitive landscape of the CGD industry.

The following table shows the comparison of the income statement of Adani Total Gas with its competitors and the industry averages for the fiscal year 2023:

Key Things to Watch Out for Adani Total Gas Stock

Adani Total Gas Stock represents an investment opportunity tied to India’s increasing reliance on natural gas. The company’s strategic position in the CGD industry and partnership with Total are notable strengths. However, investors should carefully consider several factors that could impact the stock’s performance:

1. Valuation and Volatility: Adani Total Gas has experienced a remarkable surge in stock price, growing over 1,100% from March 2020 to June 2023. However, its current PE ratio of 202.24 and PB ratio of 34.15 significantly exceed industry and Nifty 50 averages. Such high valuation metrics raise concerns about the stock’s sustainability and potential overvaluation. The stock’s volatility, influenced by various factors including strategic initiatives, market sentiments, and external challenges like allegations and technical glitches, adds to its risk profile.
2. Regulatory and Environmental Risks: The company operates in a highly regulated sector, making it susceptible to changes in rules and regulations by bodies like the PNGRB and the Ministry of Petroleum and Natural Gas. Modifications in gas prices, supply allocation, marketing exclusivity, and GST imposition can significantly impact its operations. Environmental and social factors, such as land acquisition and pipeline safety, also pose risks. Additionally, the shift towards low-carbon energy sources in response to climate change could affect its business model and profitability.
3. Dependence on the Adani Group: As a member of the Adani Group, Adani Total Gas’s operations are closely linked to the conglomerate’s broader activities. This dependence could expose the company to group-level risks such as debt burden, corporate governance issues, legal disputes, and reputational challenges.

Summary of Analysis: This analysis underscores the importance of a nuanced approach to investing in Adani Total Gas. The stock’s high valuation and associated volatility, coupled with the regulatory, environmental, and group-dependence risks, are key considerations for investors. Understanding these aspects is crucial for making informed investment decisions.

Investor Guidance: Investors should monitor these factors closely and consider their potential impact on Adani Total Gas’s future performance. Diversification, regular review of investment positions, and staying informed about industry and regulatory changes are recommended strategies to mitigate risks associated with the stock.

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Final Thoughts on Adani Total Gas share price target 2024, 2025, 2026, 2027, 2030

After a comprehensive analysis of Adani Total Gas, encompassing its business model, SWOT analysis, financial performance, and key risk factors, we arrive at a nuanced understanding of its position in the rapidly growing Indian natural gas sector. The company’s strong foothold in the CGD industry, strategic partnership with Total, and diversified product offerings in green hydrogen, biogas, and LNG are notable strengths. These factors position it well to capitalize on India’s shift towards increasing natural gas usage in its energy mix.

Adani Total Gas share price target Key Considerations:

1. Valuation and Volatility: The stock has shown exceptional growth but exhibits a high valuation and volatility. Its PE and PB ratios significantly exceed industry and Nifty 50 averages, raising concerns about sustainability and overvaluation. This volatility, influenced by various internal and external factors, adds to the investment risk.
2. Regulatory and Environmental Risks: Operating in a regulated environment, Adani Total Gas is subject to the evolving regulatory landscape and environmental considerations. Changes in gas pricing, supply allocations, and GST implications, coupled with environmental and social challenges, are potential risks.
3. Dependence on the Adani Group: The company’s reliance on the Adani Group for various operational and financial aspects brings both strengths and vulnerabilities. Group-level challenges, including debt, corporate governance issues, and reputation risks, could impact the company.

Adani Total Gas share price target Investment Recommendation:

Given these factors, investors should adopt a cautious and selective approach towards Adani Total Gas Stock. It is advisable to:

• Closely Monitor Developments: Stay updated on company-specific news, regulatory changes, and broader market trends that could affect the stock’s performance.
• Align with Risk Appetite and Goals: Consider individual risk tolerance, investment objectives, and time horizon before investing.
• Diversify Portfolio: To mitigate risks, diversify investments across different sectors and asset classes rather than concentrating heavily in a single stock or sector.

Summary:

Adani Total Gas presents a compelling investment opportunity within the burgeoning natural gas sector in India. However, its high valuation, potential volatility, and external risks necessitate a cautious investment strategy. Investors should make well-informed decisions, taking into account their financial goals and the dynamic nature of the energy market.

FAQs on Adani Total Gas share price target 2024, 2025, 2026, 2027, 2030

What is Adani Total Gas share price target 2024?

In 2024, according to market projections, Adani Total Gas is anticipated to have a minimum share price target of ₹1,275, a maximum target of ₹1,630, and an average target of ₹1,453.

What is Adani Total Gas share price target 2025?

In 2025, as per market projections, Adani Total Gas is expected to see share price targets that encompass a minimum of ₹1,594, a maximum of ₹2,038, and an average of ₹1,816.

What is Adani Total Gas share price target 2026?

In 2026, as per market expectations, Adani Total Gas share price target is anticipated to fluctuate within a range, with a minimum target of ₹1,992, a maximum target of ₹2,547, and an average target of ₹2,270.

What is Adani Total Gas share price target 2030?

Looking forward to 2030, market projections for Adani Total Gas share price targets with a minimum target of ₹4,864, a maximum target of ₹6,218, and an average of ₹5,541.