- Indraprastha Gas Limited’s (IGL) shares gained 9.68% on Tuesday’s early trade as they were trading at ₹370.35 apiece.
- IGL has announced a hike in prices of compressed natural gas (CNG) in the Delhi NCR region. The prices have been hiked by ₹0.50 per kilo.
- Delhi has become the first state government to notify an aggregator’s policy to mandate electric vehicle fleets for ride aggregators and delivery services.
Indraprastha Gas Limited’s (IGL) shares gained 9.68% on Tuesday’s early trade as they were trading at ₹370.35 apiece. Even as benchmark indices dropped marginally, the share gained. The stock quoted a 52-week high of ₹602.05 and a 52-week low of ₹321.00.
IGL has announced a hike in prices of compressed natural gas (CNG) in the Delhi NCR region. The prices have been hiked by ₹0.50 per kilo.
Kailash Gahlot, Delhi’s Transport Minister, flagged off 100 low-floor air-conditioned ‘Compressed Natural Gas’ (CNG) buses and a prototype electric bus from the Indraprastha depot on Monday, with an aim to reduce pollution in Delhi.
Delhi has become the first state government to notify an aggregator’s policy to mandate electric vehicle fleets for ride aggregators and delivery services and the state government has also launched the state’s electric vehicle website, which serves as a one-stop destination for all insights on electric vehicles in Delhi, he said during a roundtable consultation in Delhi in January 2022.
Indraprastha Gas Limited is in the business of gas distribution in Delhi and nearby regions. It is formed as a joint venture promoted by Gail (India) Limited and Bharat Petroleum Corporation (BPCL).
It caters to over 1.1 million CNG vehicles, 1.4 domestic PNG customers and over 5500 commercial and industrial customers and is one of the leading gas distribution companies in India. Its associate companies Central U.P. Gas Limited (CUGL) & Maharashtra Natural Gas Limited (MNGL) distribute gas in various cities in Maharashtra, Karnataka and Uttar Pradesh.
On February 8, 2022, Indraprastha Gas reported a 33% decline in its profits from ₹400.54 crores in Q3FY21 to ₹308.52 crores in Q3FY22, however, its revenue increased from ₹1,831.19 to ₹2,125.46 QoQ.
What do analysts say? (as of February 8, 2022)
Goldman Sachs
The firm has maintained a sell call and has cut the target to ₹380, due to input cost pressures. At that time it was said that there is a downside risk if the draft EV policy for Delhi cab aggregators gets implemented.
Prabhudas Lilladher
The brokerage believes that receding pandemic concerns and opening up of schools will further drive growth in Q4. It remains an enviable business model with high volume growth due to geographical expansion and the addition of new buses and taxis. It reiterated a buy rating with a target price of ₹662.
Motilal Oswal
The brokerage revised its FY22E EPS by 7% due to underperformance in Q3FY22. They have maintained a neutral rating on the stock with a target price of ₹450.
CLSA
The broking firm has maintained an outperform call but has cut the target price from ₹540 to ₹450.
Jefferies
The research firm has maintained a buy call but it has cut the target to ₹620.
Disclaimer
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