Indus Gas (INDI) AI Stock Analysis

• Market Cap: £18.13M
• Dividend Yield: N/A
• Average Volume (3M): 181.35K
• Price to Earnings (P/E): 3.0
• Beta (1Y): -0.35
• Revenue Growth: -31.72%
• EPS Growth: -1851.94%
• Country: UK
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.54
• Shares Outstanding: 182,973,920
• 10 Day Avg. Volume: 150,490
• 30 Day Avg. Volume: 181,353
• PEG Ratio: -0.17
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 4.70
• 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

• 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, together with its subsidiaries, operates as an oil and gas exploration and development company in Asia and Europe. The company is involved in the exploration, development, production, distribution, and marketing of hydrocarbons, including natural gas. It owns a 90% participating interest in the Block RJ-ON/6, a petroleum exploration and development concession covering an area of approximately 2,176 square kilometers located in onshore mid Indus basin, Rajasthan. The company was incorporated in 2008 and is based in Saint Peter Port, Guernsey.

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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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
EBITDA	17.65M	41.38M	61.20M	51.77M	46.14M	55.45M
Net Income	8.08M	20.18M	30.88M	35.21M	27.93M	49.06M
Balance Sheet
Total Assets	1.42B	1.41B	1.36B	1.30B	1.25B	1.08B
Cash, Cash Equivalents and Short-Term Investments	218.27K	2.07M	11.77M	4.45M	995.76K	284.62K
Total Debt	866.16M	858.67M	837.85M	837.43M	824.96M	697.90M
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	-8.95M	-22.03M	-12.24M	-22.56M	-121.60M	-90.87M
Financing Cash Flow	-4.28M	-35.67M	-54.99M	-41.46M	79.16M	28.33M

Indus Gas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.11 is below the 20-day moving average (MA) of 10.61, below the 50-day MA of 12.01, and above the 200-day MA of 8.54, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.20 is Neutral, 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%
INDI	55 Neutral	£18.13M	3.05	-192.41%	―	-31.72%	-1851.94%
ANGS	54 Neutral	£11.97M	1.38	-21.11%	―	-12.15%	-200.00%
CAD	49 Neutral	£8.92M	7.41	-16.91%	―	-29.63%	-427.78%
ORCA	33 Underperform	£7.31M	―	-39.00%	―	―	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.