Indus Gas (INDI) AI Stock Analysis

• Market Cap: £13.38M
• Dividend Yield: N/A
• Average Volume (3M): 164.98K
• Price to Earnings (P/E): 2.2
• Beta (1Y): -0.76
• Revenue Growth: -70.02%
• EPS Growth: -74.57%
• Country: UK
• Employees: N/A
• Sector: Energy
• Sector Strength: 74
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.04
• Shares Outstanding: 182,973,920
• 10 Day Avg. Volume: 113,565
• 30 Day Avg. Volume: 164,979
• PEG Ratio: 1.65
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.33
• Enterprise Value/Market Cap: 98.06
• Enterprise Value/Revenue: 7.02
• Enterprise Value/Gross Profit: 81.17
• Enterprise Value/Ebitda: 7.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Indus Gas faces significant challenges with declining revenue growth and high leverage, impacting its financial stability. While the stock appears undervalued, technical indicators suggest bearish sentiment. Addressing financial leverage and revenue growth are critical for improving its outlook.

Indus Gas Business Overview & Revenue Model

Company Description

Indus Gas Limited (INDI) is an oil and gas exploration and development company primarily operating in India. The company focuses on the exploration, development, and production of natural gas and oil reserves, with its key assets located in the prolific hydrocarbon-rich region of Rajasthan. Indus Gas is involved in a joint venture for the exploration and development of resources, aiming to harness and supply energy to meet the growing demand in the region.

How the Company Makes Money

Indus Gas makes money through the exploration, extraction, and sale of natural gas and crude oil. Its primary revenue streams include the production and sale of natural gas to local utilities and industrial consumers, as well as the sale of crude oil. The company benefits from long-term contracts with local power plants and industrial users, ensuring a steady demand for its products. Additionally, Indus Gas collaborates with strategic partners and joint ventures to enhance its exploration and production capabilities, optimizing resource development and expanding its market reach.

Indus Gas Financial Statement Overview

Summary

Indus Gas demonstrates strong profitability and cash conversion metrics, but faces challenges with declining revenue and high leverage. The company needs to address revenue growth and manage debt levels to ensure long-term stability and growth potential.

Income Statement

The company has experienced fluctuating revenue growth, with a decline in the most recent year. Gross profit margins remain strong at approximately 87.3%, and net profit margins are healthy at 47.0%. However, the declining revenue trend poses a risk to future profitability.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage, with a ratio of approximately 2.36. Return on equity is reasonable at 5.6%, but the high leverage poses potential financial risk. The equity ratio stands at 25.8%, suggesting moderate reliance on equity financing.

Cash Flow

Operating cash flow remains positive, but free cash flow has decreased significantly. The operating cash flow to net income ratio is strong at 2.40, indicating efficient cash conversion. However, the decline in free cash flow raises concerns about cash availability for future investments.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
19.09M	42.93M	63.03M	53.71M	48.53M	57.97M
	Gross Profit
16.16M	37.47M	55.67M	46.87M	45.63M	54.12M
	EBIT
15.19M	36.56M	54.76M	45.94M	44.48M	53.38M
	EBITDA
17.65M	41.38M	61.20M	51.77M	46.14M	55.45M
	Net Income Common Stockholders
8.08M	20.18M	30.88M	35.21M	27.93M	49.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
218.27K	2.07M	11.77M	4.45M	995.76K	284.62K
	Total Assets
1.42B	1.41B	1.36B	1.30B	1.25B	1.08B
	Total Debt
866.16M	858.67M	837.85M	837.43M	824.96M	697.90M
	Net Debt
865.94M	856.61M	826.08M	832.98M	823.96M	697.62M
	Total Liabilities
1.06B	1.05B	1.02B	992.30M	971.40M	827.14M
	Stockholders Equity
364.27M	363.63M	343.44M	312.56M	277.35M	249.42M
Cash Flow		Free Cash Flow
4.43M	26.41M	62.19M	44.93M	-78.48M	-28.16M
	Operating Cash Flow
22.32M	48.44M	74.43M	67.49M	43.12M	62.71M
	Investing Cash Flow
-17.89M	-22.03M	-12.24M	-22.56M	-121.60M	-90.87M
	Financing Cash Flow
-8.55M	-35.67M	-54.99M	-41.46M	79.16M	28.33M

Indus Gas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INDI, the sentiment is Positive. The current price of 7.61 is above the 20-day moving average (MA) of 6.60, above the 50-day MA of 5.91, and below the 200-day MA of 7.96, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 67.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INDI.

Indus Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENQ	75 Outperform	£268.28M	3.77	18.48%	37.27%	-21.23%	―
SQZ	74 Outperform	£701.16M	9.60	11.29%	7.78%	-9.79%	-46.17%
TLW	72 Outperform	£268.28M	5.76		―	-11.70%	―
GENL	61 Neutral	$157.22M	―	-15.72%	―	-14.44%	-22.34%
Sector *	58 Neutral	$7.58B	3.29	-4.46%	10.00%	0.84%	-49.61%
INDI	55 Neutral	£13.38M	2.17	2.28%	―	-70.02%	-74.57%

Indus Gas Corporate Events

Indus Gas Reports Decline in Interim Financials Amid Gas Supply Disruptions

Indus Gas Limited’s interim financial report for the six months ending 30 September 2024 shows a significant decline in key financial metrics compared to the previous year. The company reported adjusted revenues of US$ 2.34 million, operating profit of US$ 1.24 million, and profit before tax of US$ 1.24 million, all substantially lower than the corresponding figures from 2023. The ongoing maintenance of the ultimate customer’s gas turbine has disrupted gas supply, leading to reduced off-take by GAIL, and the company is considering seeking additional funding. The gas sale price during the period fluctuated between US$ 8.90 and US$ 7.85 per MMBTU, reflecting revised domestic gas pricing guidelines.

Indus Gas Limited Reports Decline in Interim Financial Results Amid Operational Challenges

Indus Gas Limited reported a significant decrease in revenues and profits for the six-month period ending 30 September 2024, compared to the same period in 2023. The company’s operations have been impacted by reduced gas off-take due to ongoing maintenance at the ultimate customer’s power plant, and Indus Gas is considering seeking additional external or shareholder funding. The gas sale price varied between $8.90 and $7.85 per MMBTU during the period. The company continues to engage with GAIL to increase gas off-take levels.