Prabhudas Lilladher's research report on Indraprastha Gas
Indraprastha Gas (IGL) reported an EBITDA of Rs3.6bn (down 32.1% QoQ, PLe: Rs3.5bn, BBGe: Rs3.6bn) and PAT of Rs2.9bn (PLe: Rs2.1bn, BBGe: Rs2.4bn), down 33.7% QoQ. Decline in earnings sequentially was mainly due to higher sourcing cost post decline in APM allocation While volume came in above estimates at 9.1mmscmd, EBITDA/scm was in line with expectations at Rs4.3, down 32.8% QoQ. The company has guided for an exit volume of 9.5mmscmd forFY25. With the Delhi elections to be held on 5th Feb, a price hike seems unlikely, and concerns prevail on the achievability of Rs7-8/scm EBITDA guidance that the company has stated.
Outlook
We build in a conservative volume growth CAGR of 7% over FY25-27E with an EBITDA/scm of Rs6 for FY26/27E.We maintain ‘Sell’ rating on the stock with a TP of Rs300 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!
