Prabhudas Lilladher's research report on Indraprastha Gas
Indraprastha Gas (IGL) reported a revenue of Rs39.5bn, however there was provision reversal of Rs1.14bn with regard to trade margin agreements with the OMCs. Accordingly, adj rev came in at Rs38.4bn, up 2.1% QoQ (PLe: Rs38.3bn, BBGe:Rs38.6bn). While reported EBITDA came in at Rs5bn, adj EBITDA stood at Rs3.8bn (up 5.4% QoQ, PLe:Rs3.9bn, BBGe: Rs4.2bn). Reported PAT came in at Rs3.5bn while adj PAT stood at Rs2.4bn (down 17.7% QoQ, PLe:Rs2.5bn, BBGe:Rs3.3bn).While adj EBITDA/scm was in line with expectations at Rs4.6, volume came in below estimates at 9.2mmscmd(below the exit guidance of 9.5mmscmd).
Outlook
While the company has guided for 10% YoY volume growth we build in a conservative volume growth CAGR of 7% over FY25-27E with an EBITDA/scm of Rs6 for FY26/27E. We re-rate the stock from ‘Reduce’ to ‘Sell’ on the stock with a TP of Rs 150 based on 12x FY27 adj EPS.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
