Recent Price Movement and Market Context
On the day in question, Indraprastha Gas’s stock price fell by 3.77%, underperforming the gas sector by 2.33%. The stock has declined consecutively over the past three trading sessions, accumulating a loss of 4.2% during this period. Intraday, the share touched a low of Rs.169.9, which represents the lowest level in the past 52 weeks. This price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward momentum.
In contrast, the benchmark Sensex opened lower by 265.21 points and was trading at 83,926.60, down 0.36% on the same day. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 2.66% away, and has recorded a three-week consecutive rise with a gain of 2.93%. This divergence highlights the relative weakness of Indraprastha Gas compared to the broader market.
Financial Performance and Profitability Metrics
Indraprastha Gas’s recent financial results have contributed to the subdued market sentiment. The company reported flat results for the half-year ended September 2025, with a Return on Capital Employed (ROCE) at a low 17.88%, which is the lowest recorded in recent periods. Profit Before Tax (PBT) excluding other income for the latest quarter stood at Rs.392.73 crore, reflecting a decline of 10.7% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) for the quarter was Rs.386.29 crore, down 7.2% relative to the prior four-quarter average.
These figures indicate a contraction in profitability, which has weighed on investor confidence and contributed to the stock’s downward trajectory.
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Long-Term Performance and Relative Strength
Over the past year, Indraprastha Gas has generated a negative return of 11.11%, significantly underperforming the Sensex, which posted a positive return of 10.18% during the same period. The stock’s 52-week high was Rs.229.2, indicating a substantial decline of approximately 26% from that peak to the current 52-week low.
Moreover, the company has consistently underperformed the BSE500 index over the last three annual periods, reflecting ongoing challenges in maintaining competitive returns. This persistent underperformance has been a factor in the recent downgrade of the company’s Mojo Grade from Hold to Sell as of 7 Jan 2026, with a current Mojo Score of 44.0.
Valuation and Balance Sheet Strength
Despite the recent price weakness, Indraprastha Gas maintains certain financial strengths. The company exhibits a high Return on Equity (ROE) of 19.16%, indicating efficient utilisation of shareholder capital. Additionally, the average Debt to Equity ratio remains at zero, underscoring a conservative capital structure with minimal leverage.
The stock trades at a Price to Book Value ratio of 2.2, which is considered attractive relative to its peers’ historical valuations. However, the company’s profits have declined by 13.5% over the past year, which has contributed to the valuation discount.
Institutional Holding and Market Perception
Institutional investors hold a significant stake in Indraprastha Gas, with 46.17% of shares owned by these entities. This level of institutional ownership suggests that the stock remains under close scrutiny by investors with substantial analytical resources, despite the recent price decline.
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Summary of Key Metrics
To summarise, Indraprastha Gas Ltd’s stock has reached a 52-week low of Rs.169.9 following a series of quarterly profit declines and a downgrade in its Mojo Grade to Sell. The company’s ROCE at 17.88% and falling PBT and PAT figures have contributed to subdued market sentiment. While the stock trades below all major moving averages and has underperformed the Sensex and BSE500 indices over the last year, it retains strengths such as a high ROE of 19.16%, zero debt, and a valuation discount relative to peers.
These factors collectively provide a comprehensive view of the stock’s current standing within the gas sector and the broader market environment as of February 2026.
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