Sell Indraprastha Gas; target of Rs 340: Motilal Oswal

Motilal Oswal recommended sell rating on Indraprastha Gas with a target price of Rs 340 in its research report dated March 15, 2023.

Broker Research

March 16, 2023 / 15:12 IST

The four stocks they exited are Macpower CNC Machines, NDR Auto Components, Novartis India and RSWM, according to Dolat Capital.

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Indraprastha Gas

CNG and domestic PNG volumes for listed CGDs (IGL, MAHGL, GUJGA & ATGL) reported a 7% CAGR over the past four years, while gas production from nominated fields declined at 3% CAGR during the same period. The supply-demand imbalance is likely to continue, thereby increasing the proportion of expensive non-APM volumes in sourcing mix for CGDs. This should further lead to structural margin challenges going forward.

Outlook

For Indraprastha Gas (IGL), we estimate that the 20% penetration of EVs in sales of new CNG vehicles over the next three years would result in a decline in average CNG sales volume growth to 9% from 12% in our base case. Prospects of long-term high volume growth remain even bleaker for the company. Considering both these headwinds, we reiterate our Sell rating on the stock with a TP of INR340.

For all recommendations report, click here