India Infoline has maintained its buy rating on Indraprastha Gas with a target price of Rs 142 in its June 19, 2008 research report."Currently about 5,000 private vehicles are getting converted to CNG every month. With increased prices of petrol and diesel, the competitiveness of CNG as a fuel has increased further. We believe, the conversions would pick up further pace in the near term. Also, the company is expanding into new territories of Noida and Greater Noida, however, with some delays."

"The demand could see further momentum if railways decide to convert locomotives to CNG. Penetration of PNG in the city is still at significantly lower level. With hike in LPG prices we believe there could be increased conversions to PNG. Additional applications of gas in industrial activity could add to demand growth for PNG. We expect the company to register revenue CAGR of 15.5% and PAT CAGR of 12.4% during FY08-10E. We maintain our BUY recommendation on the stock with a target price of Rs 142, upside of 19%," says India Infoline's research report.

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