Prabhudas Lilladher's research report on Indraprastha Gas
Indraprastha Gas (IGL) reported weaker than expected Q3 results with an EBITDA/PAT of Rs 5.6bn (down 14% QoQ, PLe: Rs6.8 bn) and Rs 3.9 bn (down 27% QoQ, PLe: Rs4.7bn). Drag in earnings was primarily led by lower than anticipated sales volume. EBITDA/scm came in at Rs7.2, down 16% QoQ. Going ahead, we build in a conservative volume growth CAGR of 7% over FY24-26E with an EBITDA/scm of Rs7. The stock is currently trading at 16.4x FY26 EPS and 10x FY26 EV/EBITDA.
Outlook
We maintain ‘Hold’ rating with a TP of Rs382 (earlier Rs416) based on 14x FY26E standalone EPS and adding the value of investments.
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