Adani Total Gas share has turned into a multibagger in last one year. The energy sector stock has risen over 11 times during the period. An investment of Rs 1 lakh in this stock on May 26 last year would have turned into Rs 11.34 lakh today. On May 26, 2020, the stock stood at Rs 114 on BSE. The stock closed at Rs 1,293, down 2.17% on BSE today, logging a rise of 1,034% during the last 12 months.
The stock has zoomed 1,043% from its 52-week low of Rs 113.10 hit on May 27, 2020 till date. On the other hand, Sensex and Nifty have gained 65% and 68.25%, respectively in one year.
In comparison, the energy firm's peers have lagged behind in terms of returns on bourses in one year. While Gail India share could rise 77.92%, stock price of another energy major Petronet LNG clocked a meagre 2.25% gain during the same period.
Share price of another peer firm Indraprastha Gas has risen 13.17% in one year. Share of another firm Gujarat State Petronet has gained 43.36% in one year.
The strong rise in the stock can be attributed to stellar financial performance of the firm. The firm has recovered strongly from the coronavirus lockdown shock the corporate India witnessed last year.
For quarter ended June of last fiscal, the firm reported Rs 46 crore in net profit as the effects of Covid- 19 lockdown reflected on the company's numbers. In the preceding quarter, net profit stood at Rs 122 crore.
However, net profit came at a strong Rs 135 crore for the quarter ended September 2020.
In the next quarter, the Adani Group firm reported a profit of Rs 145 crore. In March quarter of previous fiscal, the firm reported a 18.38% rise in consolidated at Rs 143.73 crore. In fact, the company has clocked 42% CAGR growth in net profit in the last three years
Sales in Q4 rose 26.44% to Rs 584.48 crore against Rs 462.25 crore in the corresponding period of previous fiscal.
Operating profit has grown at 24.5% CAGR in last three years.
On an annual basis, net profit rose 6.07% to Rs 462.82 crore for the fiscal ended March 2021 against Rs 436.32 crore in the year ago period.
Earnings per share in last fiscal rose to Rs 4.21 in last fiscal against Rs 3.97 in the fiscal ended March 2020. Promoters kept their holding unchanged at 74.8% for the quarter ended March 2021. Mutual funds also kept their stake stable at 0.02% in March 2021 quarter.
However, number of FII/FPI investors has risen from 111 to 157 in the last quarter. Institutional investors too have raised their holdings from 21.05% to 21.27% in March quarter.
In early May, the firm said the latest wave of Covid-19 pandemic in the country will have a temporary impact on the company's gas sales volumes, while it sees normalcy to return as soon as the pandemic surge settles.
Addressing a media analyst concall after the announcement of company's quarterly and annual financial results, company's CEO, Suresh Mangalani, said gas demand was impacted last year because there was a nationwide lockdown early last year.
"This time, a certain section of the country is under lockdown. Some of the others have restricted lockdown. We are definitely seeing some decline. But not as much as last time that we saw," Mangalani said.
Adani Total Gas is an India-based company which is into the business of development of natural gas. The company is a wholly owned subsidiary of Adani Enterprises. The firm develops a network for city gas distribution networks to supply piped natural gas to the industrial, commercial, domestic and compressed natural gas to the transportation sector.
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