ICICI Direct has given Hold recommendation for Indraprastha Gas with a target price of Rs. 430 in its research report issued on Oct 23, 2022
ICICI Direct’s research report on Indraprastha Gas
Indraprastha Gas (IGL) is one of India’s largest city gas distribution companies and primarily operates in the NCT of Delhi. As per FY22 AR, the company has 711 CNG stations and provided PNG connections to ~20 lakh households and 7715 commercial & industrial consumers. CNG sales contribute 75% of its total sales volume • Overall, sales volume grew at 9% CAGR in FY17-22.
Due to near term uncertainty, we maintain our HOLD rating on the stock. We value IGL at Rs 430 (standalone at ~Rs 397 i.e. 19x P/E on FY24E EPS and investments at ~Rs 33).