IGL

Buy Indraprastha Gas Ltd With Target Of Rs 370 : PINC Research

Indraprastha Gas Ltd. (IGL), sole supplier of natural gas to National Capital Region of Delhi, boasts of a sovereign parentage of GAIL, BPCL and the Govt. of Delhi. To keep its pace with the growing demand for CGD, IGL continues its drive to expand its network in Delhi and NCR towns of Noida, Greater Noida and Ghaziabad.

Secular growth story

We expect CNG segment to grow at a CAGR of 13% and PNG segment with higher rate of 58% for next three years. On the back of strong volume growth and regular price hike to nullify the impact of high cost, net sales is expected to grow at a CAGR of 40.6% from FY10 to FY13.

Ability to pass price hike

Buy IGL With Target Of Rs 370 : PINC Research

Agressive capex plan of ~Rs30bn by FY15 and ability to pass price hike

Increase in CNG stations from 200 to 300 and PNG customers from 182K to 300K by FY12

Net sales and PAT to grow at a CAGR of 40.6% and 13.6% respectively from FY10 to FY13

Concern over un-economical LNG price in spot market and negative regulatory intervention

At CMP of Rs297, IGL is trading at PER of 14.7x & 13.1x and EV/ EBITDA of 7.9x & 6.8x for FY12 & FY13 respectively.

Buy IGL With Stop Loss Of Rs 333

Buy IGL With Stop Loss Of Rs 333Technical analyst Jatinder Sharma has maintained 'buy' rating on Indraprastha Gas Limited stock with a 2-3 day target of Rs 360.

According to analyst, the investors can purchase the stock with a stop loss of Rs 333.

The stock of the company, on December 06, closed at Rs 341.70 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 373.70 and a low of Rs 176 on BSE.

Current EPS & P/E ratio stood at 16.71 and 20.66 respectively.




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