This Adani stock has turned to become a huge multibagger in 2021

resr 5paisa Research Team 9th December 2022 - 12:15 pm
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Adani Total Gas exploded with an unreal growth of 625% year-to-date.

One of the most exceptional stocks in terms of generating huge returns for Adani Group has been none other than Adani Total Gas Ltd (ATGL). It has been a top-notch multibagger for its shareholders. If you had invested Rs 1 lakh in the stock, it would have turned out to be about Rs 7.25 lakh in just one year. This is massive wealth creation. This stock has been one of the major reasons why Gautam Adani became the second richest person in Asia.

Is the growth backed by the fundamentals?

For the six months trailing from October 21, 2021, the multibagger stock has performed poorly relative to the first half of YTD. It has generated a return of just about 20% in the last six months and that was primarily due to poor fundamental performance in Q1FY22. Net sales in Q1 stood at Rs 522 crore which witnessed a sequential decline of 15%. The net profit decreased by 4.4% sequentially to Rs 138.4 crore. For the last three months, the stock has been hovering around Rs 1400 levels.

The macroeconomic perspective

India is looking forward to adopting cleaner forms of energy among which natural gas is a popular alternative. GOI intends to increase the use of natural gas to 15% by 2030 in its fuel mix, which currently stands at about 6.2%. Without a doubt, this multibagger company is one of the largest players in the space and investors have implied huge growth opportunities in the current share price.

ATGL is developing city gas distribution (CGD) networks to supply natural gas to residential, industrial, commercial segments and also provide CNG for transport. On October 21, 2021, the stock was trading at Rs 1440, up by 3.2% as of 12:30 pm on the BSE.

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