Indraprastha Gas Ltd.
ISIN: INE203G01027 • Market Cap: ₹21,427 Cr
The 5-Pillar Quality Audit for Indraprastha Gas Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.8%), Return on Capital Employed (16.4%), and equity compounding (16.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.5%) and 3Y PAT CAGR (-13.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 15.74 vs PEG of 1.57 and Dividend Yield of 3.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 45.0%, backed by 45.2% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Attractive Valuation Margin (P/E: 15.74)
Trading at a P/E multiple of 15.74, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (45.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 45.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking IGL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare IGL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Indraprastha Gas Ltd. (IGL)Current | 69/100 | ₹21,427 Cr | 15.74 | 16.4% | 0.00 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: Indraprastha Gas Ltd.
Q:What is the 5-Pillar Fundamental Score for Indraprastha Gas Ltd. (IGL)?
Indraprastha Gas Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (64/100), Financial Health (87/100), Growth (35/100), Valuation (78/100), and Ownership Quality (82/100).
Q:Is IGL fundamentally strong for long-term investment?
IGL currently holds a moderate quality rating of 69/100. While it operates in the Oil Gas & Consumable Fuels sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does IGL pass the Coffee Can Investing filter?
Yes! IGL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does IGL compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, IGL trades at a P/E of 15.74 and generates an ROCE of 16.4%. Compare its 5-Pillar score of 69/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.