Adani Total Gas Shares Rally on Robust Q2 Performance
Adani Total Gas Ltd (ATGL) witnessed a sharp 9% surge in its share price, reaching ₹928.75 on the BSE, following the release of its Q2 FY24 results. The rally reflects renewed investor confidence in the Adani Group’s city gas distribution (CGD) arm, driven by strong financials and optimistic growth projections.
Key Financial Highlights
- Net Profit: ₹173 crore (up 20% YoY)
- Revenue: ₹1,177 crore (up 5% YoY)
- EBITDA: ₹287 crore (6% growth YoY)
The company’s improved margins and higher sales volumes in CNG and PNG segments contributed to the bullish sentiment. Operational efficiency and stable pricing strategies further bolstered investor confidence.
Expansion Plans & Market Opportunities
ATGL is aggressively expanding its footprint across 52 geographical areas (GAs), focusing on rural and semi-urban markets. The Indian government’s push for cleaner energy—targeting 15% natural gas in the energy mix by 2030—positions ATGL favorably for long-term growth.
Analyst Reactions & Target Price Revisions
- ICICI Securities: Maintained ‘Buy’ rating, citing strong execution and volume growth.
- Motilal Oswal: Raised target price, highlighting ATGL’s debt-free balance sheet.
- Risks: Regulatory changes and global gas price volatility remain key concerns.
Adani Group’s Recovery & Strategic Strengths
The rally signals recovering investor trust in the Adani Group post-Hindenburg challenges. ATGL’s joint venture with TotalEnergies provides technical and financial stability, aiding its expansion in India’s energy sector.
Outlook: Clean Energy & Diversification
With plans to diversify into EV charging and biogas, ATGL is poised to leverage India’s energy transition. The Q2 results underscore its growth potential, making it a key player in the CGD space.
