Ganesh Shanbhag view on Indraprastha Gas

Indraprastha Gas is relatively well placed right now in the CNG space, says Ganesh Shanbhag, CEO, SMS Financial Services.

Shanbhag told CNBC-TV18, "Indraprastha Gas is relatively well placed right now in the CNG space. If you look at the overall growth sector in that space, it controls the near monopoly in the NCR region in distribution of natural gas. Typically natural gas is around 62% cheaper than petrol and around 28% cheaper than diesel. They have ramped up the number of outlets also from 180 to 240. So I think going forward we will see that the valuations in this company would change quite substantially." The company's trailing 12-month (TTM) EPS was at Rs 17.29 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 18.78. The latest book value of the company is Rs 58.96 per share. At current value, the price-to-book value of the company was 5.51. The dividend yield of the company was 1.39%.