Moneycontrol
Last Updated : Jun 03, 2020 12:45 PM IST | Source: Moneycontrol.com

IGL share price gains 5%; Morgan Stanley overweight with target of Rs 471

Recently, company hiked CNG prices by Re 1 per kg to make up for the additional cost incurred to keep stations coronavirus ready.

 
 
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Indraprastha Gas (IGL) share price added 5 percent intraday on June 3 after Morgan Stanley maintained an overweight rating on the stock.

Morgan Stanley has maintained an overweight rating on the stock with a target at Rs 471 per share. CNG price hiked will help partly recover some of the fixed costs, reported CNBC-TV18.

Credit Suisse has maintained a neutral call with a target at Rs 410 per share.

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The company has increased the retail price of CNG in Delhi by Re 1 per kg. The gross margins for the company are now close to MGL for the CNG segment and higher FY21 gross margin provides a buffer to absorb 9-10% volume decline.

The input gas prices could further decline by 20-25% from October, reported CNBC-TV18

Recently, the company hiked CNG prices by Re 1 per kg to make up for the additional cost incurred to keep stations coronavirus ready. The revised CNG price in the national capital from Rs 42/ kg to Rs 43/ kg, w.e.f. June 2, 2020. However, there will be no change in piped cooking gas prices.

At 12:18 hrs, Indraprastha Gas was quoting at Rs 494, up Rs 21.30, or 4.51 percent on the BSE.
First Published on Jun 3, 2020 12:40 pm
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