Shares of Adani Total Gas Ltd are in focus today after the Adani Group firm said it would invest Rs 18,000 crore to Rs 20,000 crore in the next 8 to 10 years to expand infrastructure for retailing CNG to automobiles and piping gas to households and industries.
In the previous session, the stock closed 2.26% higher at Rs 655.15 against the previous close of Rs 640.70 on BSE. Market cap of the firm rose to Rs 72,054 crore on BSE. A total of 0.79 lakh shares of the firm changed hands, amounting to a turnover of Rs 5.17 crore on BSE.
Adani Total Gas stock has lost 72.62 percent in a year and fallen 81.52 per cent in 2023. In terms of technicals, the relative strength index (RSI) of the Adani Total Gas stock stands at 39.2, signaling the stock is trading neither in the oversold nor overbought zone. Adani Total Gas has a one-year beta of 1.3, indicating high volatility during the period.
In the company's latest annual report, chief financial officer Parag Parikh said the company invested over Rs 1,150 crore in 2022-23 (April 2022 to March 2023) for creating additional infrastructure.
"For our city gas distribution (CGD) business, we intend to invest around Rs 18,000-20,000 crore in the next to 8-10 years to build infrastructure that widens our customer base and sustains revenue growth," he said.
The company sells CNG to automobiles and pipes gas to household kitchens for cooking purposes in 52 licences that cover 124 districts of the country. It has 460 CNG stations in the country and about 7 lakh consumers of its piped cooking gas.
Adani Total Gas Ltd—the joint venture of Adani group and TotalEnergies of France which sells CNG to automobiles and piped gas to households—clocked a 21 per cent rise in net profit for the quarter ended March.
Net profit rose 20.74% to Rs 97.91 crore in the January-March quarter compared to Rs 81.09 crore profit in the corresponding period a year ago. Revenue from operations climbed 12.37% to Rs 1197.31 crore in Q4 from Rs 1065.48 crore in the year-ago period. Revenue in the December quarter stood at Rs 1185 crore.
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