Moneycontrol Be a Pro
Get App
Last Updated : Jun 13, 2019 03:15 PM IST | Source: Moneycontrol.com

Buy Indraprastha Gas; target of Rs 376: Dolat Capital

Dolat Capital is bullish on Indraprastha Gas has recommended buy rating on the stock with a target price of Rs 376 in its research report dated May 27, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Indraprastha Gas


IGL volume at 6.27 MMSCMD with realizations of ` 27.2 per SCM (up 7.3% YoY) was ahead of estimates. Volume growth was spurred by strong performance in the industrial segment. Gas cost also reduced 3.9% sequentially. Gross spreads were strong at ` 11.2 per SCM. We believe that gas cost should increase sequentially and IGL has taken adequate price hikes to maintain / expand spreads. Volume growth outlook looks good and we believe that IGL should be able to maintain double-digit volume growth trajectory driven by CNG economics and expansion in regions like Rewari and Gurugram. IGL has got full rights of CGD operations in high potential Gurugram region. This enhances our confidence on long term volume outlook. We continue to like the story considering the business dynamics of IGL.


Outlook


We bring in FY21 estimates and value it on DCF. There can be some short term pressure on the stock price as there will be capex spent undertaken for new areas. We reiterate our Buy recommendation with a target price of ` 376. (DCF Method).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 13, 2019 03:15 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant