Indus Gas (INDI) AI Stock Analysis

• Market Cap: £6.94M
• Dividend Yield: N/A
• Average Volume (3M): 318.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 61.18%
• EPS Growth: -4476.64%
• Country: UK
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 182,973,920
• 10 Day Avg. Volume: 538,951
• 30 Day Avg. Volume: 318,200
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: 8.00p ▼(-23.22% Downside)

Indus Gas's overall stock score is primarily impacted by its financial instability, characterized by high leverage and negative profitability. The technical analysis further indicates bearish momentum, and the valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield. These factors collectively suggest a high-risk investment profile.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Indus Gas's products and effective market penetration, supporting long-term business expansion.

Operational Efficiency

Efficient operations suggest that Indus Gas can manage its costs effectively, which is crucial for sustaining profitability and competitiveness in the long term.

Market Demand

The increasing energy demand in India provides a favorable environment for Indus Gas, enhancing its growth prospects and market opportunities.

Negative Factors

High Leverage

High leverage poses a financial risk, potentially limiting Indus Gas's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Negative profitability undermines financial stability, making it challenging for Indus Gas to sustain operations and invest in future growth.

Weak Cash Flow Management

Weak cash flow management can hinder Indus Gas's ability to fund operations and investments, affecting long-term financial health and strategic flexibility.

Indus Gas Business Overview & Revenue Model

Company Description

Indus Gas (INDI) is an exploration and production company focused on natural gas in India. The company is primarily engaged in the extraction and sale of natural gas and associated products, operating in key geographical regions where it has secured exploration rights. Indus Gas aims to meet the growing energy demands of the Indian market by leveraging its resources and expertise to provide clean and efficient energy solutions.

How the Company Makes Money

Indus Gas generates its revenue primarily through the sale of natural gas extracted from its fields. The company enters into long-term contracts with various customers, including utilities, industrial users, and other energy firms, which ensures a steady stream of income. Additionally, the company benefits from pricing mechanisms tied to market rates and government regulations. Strategic partnerships with local and international energy firms also enhance its operational capacity and market reach, contributing to its financial performance. Factors such as rising energy demand in India and favorable regulatory policies further support the company's revenue growth.

Indus Gas Financial Statement Overview

Summary

Indus Gas faces significant financial challenges, with strong revenue growth overshadowed by a substantial net loss and high leverage. While operational efficiency is evident through healthy EBIT and EBITDA margins, the negative net income and weak cash flow management raise concerns about the company's financial stability and sustainability. The high debt levels further exacerbate the risk profile.

Income Statement

Indus Gas has shown a significant revenue growth rate of 55.35% in the most recent year, which is a positive indicator. However, the company reported a substantial net loss, leading to a negative net profit margin. The gross profit margin remains strong, but the negative net income overshadows these positives. The EBIT and EBITDA margins are healthy, indicating operational efficiency, but the overall profitability is concerning.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a financial risk. The return on equity is negative due to the net loss, and the equity ratio is low, reflecting a heavy reliance on debt financing. These factors suggest financial instability and potential risk in the company's capital structure.

Cash Flow

The cash flow statement shows a negative free cash flow growth rate, indicating cash flow challenges. The operating cash flow to net income ratio is positive, suggesting that the company can generate cash from operations, but the negative free cash flow to net income ratio highlights issues in covering net income with free cash flow. Overall, cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.65M	29.65M	42.93M	63.03M	53.71M	48.53M
Gross Profit	27.25M	27.25M	37.47M	55.67M	46.87M	45.63M
EBITDA	27.59M	27.59M	41.38M	61.20M	51.77M	46.14M
Net Income	-357.58M	-357.58M	20.18M	30.88M	35.21M	27.93M
Balance Sheet
Total Assets	893.50M	893.50M	1.41B	1.36B	1.30B	1.25B
Cash, Cash Equivalents and Short-Term Investments	240.22K	240.22K	2.07M	11.77M	4.45M	995.76K
Total Debt	164.09M	164.09M	858.67M	837.85M	837.43M	824.96M
Total Liabilities	887.45M	887.45M	1.05B	1.02B	992.30M	971.40M
Stockholders Equity	6.05M	6.05M	363.63M	343.44M	312.56M	277.35M
Cash Flow
Free Cash Flow	-3.34M	-3.34M	26.41M	62.19M	44.93M	-78.48M
Operating Cash Flow	7.25M	7.25M	48.44M	74.43M	67.49M	43.12M
Investing Cash Flow	-7.17M	-10.59M	-22.03M	-12.24M	-22.56M	-121.60M
Financing Cash Flow	1.22M	1.51M	-35.67M	-54.99M	-41.46M	79.16M

Indus Gas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INDI, the sentiment is Negative. The current price of 10.42 is above the 20-day moving average (MA) of 8.79, above the 50-day MA of 9.45, and above the 200-day MA of 9.04, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 28.02 is Positive, neither overbought nor oversold. The STOCH value of 15.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:INDI.

Indus Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ANGS	54 Neutral	£11.97M	-1.14	-21.11%	―	-12.15%	-200.00%
CAD	52 Neutral	£10.67M	-2.40	-16.91%	―	-29.63%	-427.78%
INDI	38 Underperform	£6.94M	-0.02	-203.02%	―	61.18%	-4476.64%
ORCA	33 Underperform	£10.47M	-11.04	―	―	―	27.27%

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.