Shares of Indraprastha Gas (IGL) touched 52-week high of Rs 1,164.70, rises 3.8 percent intraday Monday as it has received permission to gas distribution network in Gurugram.
The company has received the permission from the Director of Industries & Commerce, Haryana to lay, build and operate City Gas Distribution (CGD) network in Gurugram in the area lying between west side of Sobha road and National Highway-8 of Gurugram.
The company is the central government authorised entity for the city of Gurugram.
The research firm CITI believes that the latest development of lay down of CGD network in Gurugram allows the company a foot in the door of a new and very material market opportunity and should arguably permit it to gradually expand to the other parts of Gurgaon over a period of time.
The firm believes that the access to the entire Gurgaon market could lead to potential value accretion of Rs 155 per share, which lead to raise target price to Rs 1330.
It expects the company's 1Q results should be strong on the back of margin improvement and retained buy rating with a target of Rs 1330.
At 12:19 hrs Indraprastha Gas was quoting at Rs 1,145.50, up Rs 23.15, or 2.06 percent on the BSE.Posted by Rakesh Patil