Prabhudas Lilladher's research report on Indraprastha Gas
We maintain our earnings for FY22/23E. IGL reported strong results with EBIDTA/PAT of Rs5.3bn (+39%Q/Q; 2yr CAGR 16%; PLe Rs5.5bn) and Rs4.0bn (+64%Q/Q; 2yr CAGR 3% due to tax write back in Sept 19; PLe Rs3.7bn) respectively. Volumes recovered as lockdown restrictions eased to 666mscm (+38%Q/Q; 2yr CAGR 5%). We believe receding pandemic concerns and opening up of schools will further drive growth in Q3. IGL remains an enviable business model with high volume growth due to geographical expansion and addition of new buses and taxis.
Outlook
Also, fuel economics, shift to private vehicle ownership post pandemic will drive CNG volumes despite excise duty cuts. Reiterate “BUY” with DCF-based PT of Rs662 (unchanged).
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