ATGL share price target 2025 to 2030

Hello, and welcome to another stock review. In this post we will analyse Adani Total Gas Ltd. We will discuss the company’s profit and loss, revenue, balance sheet and future plans to give you ATGL share price target from 2025 to 2030.

Adani Total Gas Ltd -Company Overview

ATGL is an Adani group and Total Energy company. As the name suggests Adani Total Gas Ltd is involved in the business of city gas distribution. It supplies Piped Natural Gas (PNG)  to homes, businesses and CNG to vehicle users. 

Natural gas is convenient and environment friendly and it can be supplied via pipelines whereas LPG can only be supplied in cylinders.

The company is slowly spreading its network in different cities of India. It has already set up its piped gas network in Ahmedabad, Vadodara, Faridabad, and Khurja. 

Adani Total Gas Ltd and Indian Oil Corporation Ltd have also come together in a contract to develop gas distribution networks for Allahabad, Chandigarh, Ernakulam Panipat Daman Dharwad Udham Singh Nagar respectively.

The company is also setting up new CNG stations to cater to the cheap fuel centric Indian vehicle users.

To grow better in India ATGL is setting up new charging stations for Electric vehicles. EV owners need quick charging points during their travel to maximise the range of their vehicles. 

ATGL is trying to solve this problem by setting up fast charging stations. Right now the company has 329 charging stations across 10 states in India with an installed capacity of 6.6MW.

Some financial ratios of Adani Total Gas Ltd.

Lets analyse some financial ratios of Adani Total Gas Ltd to know how its stock is performing and how much debt the company has or what kind of returns it is making on its capital and equity of the investors. We have a different opinion than the general investors. Let’s give you our opinion and tell you why and what we think about ATGL.

Market cap

First of all the market cap of the company is Rs 106137 crores and we think that this is purely based on the stock price. The sales of its competitors are way higher than ATGL. 

Stock price and P/E

Stock is currently trading at Rs 965 which is a 52 week high of 1260 and low of Rs 522. Stock P/E is 178 which is ridiculously high compared to the sectors P/E of only 13.4. At this price the stock is really not recommended due to its overvaluation.

ROCE and ROE

The stock is also trading at 32.8 times its book value price of Rs 29.4 only. Although the company is making 20.7% return on its capital (ROCE) and 20.4% returns on equity but we still think this stock is highly priced.

Debt

Sales has increased by only 3.44% in trailing twelve months  but the profits have grown at a rate of 12%. Debt of the company is manageable at Rs 1356 crores with a debt to equity ratio of only 0.42.

Returns

The shareholders have made a loss of -7.83% in trailing twelve months and only 5.76% returns in 3 years. These returns are very poor and in 3 years a fixed deposit would give you better returns. 

Summary

Overall Adani Total Gas Ltd is overvalued and the stock is overpriced and based on sentiments only. The name of Gautam Adani is enough to roll a stocks price high. 

However there are reasons why we think that this stock will grow better and we have given those reasons along with the ATGL share price targets 2025-2030 below.

ATGL share price target table

ATGL share price target 2024

Adani Total Gas Ltd installed more than 500 CNG stations till 31st December 2023. The company is also opening new CNG stations on Company owned and dealer operated basis. In this model an individual can install the CNG station and brand it with ATGL. The company has already managed to install 100 such CNG stations.

The growth rate of Adani Total Gas is phenomenal and at this pace we expect that ATGL share price target for 2024 will be Rs 1652.79. 

ATGL share price target 2024 is as follows

ATGL share price target 2025

ATGL is rapidly expanding its infrastructure to reach more and more customers. The company has already laid 11712 inch-kilometre long PNG line as well. On average the company is laying 3 Kilometres of pipeline everyday. 

If we talk about the consumers, the company has added 77697 new homes to its customers list in the last 9 months, which is a huge achievement. This growth also reflects through the 33% y-o-y growth in sales in the last 3 years.

In the next 2-3 years Adani gas will grow really fast and the stock prices are also expected to grow very well. We project a share price target of Rs 1902.25 for ATGL in 2025.

ATGL share price target 2025 is as follows

ATGL share price target 2026

With a market cap of Rs 106137, ATGL is only behind Gas Authority of India Ltd (GAIL) but in terms of sales the company is way behind the competition. The company needs to improve its revenue and acquire more customers faster to beat its competition. To increase the sales the company is providing gas to its customers with lower margins. 

The share price projection of ATGL in 2026 is Rs 2224.89. 

ATGL share price target 2026 is as follows

Also Read: Manali Petrochemicals share price target

ATGL share price target 2027

When investors decide to put their money into a stock, the first thing they check is the returns of the past few years. This is the part where ATGL will disappoint you. The company has given negative returns of -3.20% in the last one year and only 9.36% returns in the last 3 years. 

These returns will improve in the future with support from the Govt for clean fuel. We expect that ATGL share price will hit a target of Rs 2455.26 in 2027.

ATGL share price target 2027 is as follows

ATGL share price target 2028

The Indian government shows interest, in the natural gas industry with Prime Minister Sh. Narendra Modi stating that Indian natural gas production will rise from 6% to 15%. An article in the Hindustan Times reports that the government plans to invest Rs 67 billion in this sector over the 5-6 years.

With the governments focus on the natural gas sector we anticipate a growth rate than previously seen leading us to set a share price target of Rs 2603.87 for ATGL by 2028.

ATGL share price target 2028 is as follows

ATGL share price target 2029

ATGL is currently focused on creating Bio CNG from waste. Is, in the process of setting up Bio CNG plants. They are embarking on projects to establish two facilities for bio CNG production. 

One of these sites will be located in Barsana, Uttar Pradesh with a processing capacity of 225 tons. The second facility is planned for construction in Ahmedabad by the end of 2025 aiming to produce 500 tons per day. These facilities will increase company’s production.

Furthermore ATGL has secured a contract from Rajkot Municipal for the development of Bio CNG plants. This particular plant will handle 250 tons per day of waste in Rajkot.

By 2029 ATGL share price will reach a target price of Rs 2716.49.

ATGL share price target 2029 is as follows

ATGL share price target 2030

ATGL is a great company for investors because it is growing well and the government is also supporting the natural gas production. The company is doing decently well in the PNG, CNG and EV charging stations.

For the future plans, ATGL is also venturing into Liquified Natural Gas (LNG) which can be transported via pipelines. The company has already installed one LNG outlet in Dahej Gujarat. The outlet will start production in July 2024.

These optimistic future plans really put ATGL ahead of the competition because the company is really focused on building the infrastructure first.

We project a share price target of Rs 2912.41 for ATGL in 2030.

ATGL share price target 2030 is as follows

Also Read: Orient green power share price target

Shareholding pattern of ATGL

Numbers in percentages

Shareholding patterns of a company also give us a hint as to how the company is performing. It also indicates if the shareholders trust the company or not. In case of ATGL there is not a lot to talk about in terms of shareholding. 

Promoters

The promoter’s share has stayed same at 74.80% since March 2019. Promoters share lies mainly with Gautam Adani and TotalEnergies Holding SAS. Both these promoters have 37.4% share. It is not a very positive thing if so much equity stays with promoters only because in case of a bulk deal the share price could be impacted drastically.

Foreign Institutional Investors

FIIs interest has dropped if we compare their holdings in March 2019. The FIIs had 21.6% shareholding in March 2019 which has decreased to 13.06%. When FIIs sell their share, it could be something fishy they see in the company or they may be expecting low returns in future.

Domestic Institutional Investors

DIIs on the other hand have increased their share from 0.48% in March 2019 to 6.14% in 2023. Major domestic investor is Life Insurance Corporation of India. 

Public

The distribution of shares, among the public has shown progress increasing from 3.11% in March 2019 to 5.98% by Dec 2023. This notable surge indicates a rising level of confidence and enthusiasm from the public, towards investing in the energy company’s shares.

Ultimately despite the promoter’s firm control, over Adani Total Gas Limited, the evolving landscape of public investors paints an intricate picture of the company ownership. This transformation signifies trust, asset sales and a broader range of stakeholders embraced through the growing ownership. It mirrors the vitality of the energy market. Underscores the company’s positioning, within it.

Conclusion

Despite growth forecasts and government backing the evaluation of ATGLs stocks raises some debate. Concerns arise due to the companys P/E ratio, potential overvaluation and mixed opinions among shareholders about its market performance. While ATGL demonstrates metrics like ROCE and manageable debt levels shareholder returns are not as impressive.

Furthermore the significant presence of promoters in shareholding prompts discussions on equity distribution and market stability. Nevertheless the increasing public ownership indicates a growing belief in ATGLs prospects. The share price is way below its all time high, so there is margin for growth. We still recommend you to do your own research before investing.

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