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New York, March 24 - Major US stock indices rose Wednesday as investors looking for good news shrugged off a record low for US home sales.

The Commerce Department said sales of new homes plunged 16.9 percent in February from the previous month to a record low annual rate of 250,000, signalling that the housing sector remains in disarray, three years after causing the near-collapse of Wall Street.

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

Gujarat Gas Company Ltd (GGAS) is the largest private city gas distribution (CGD) player in the country with strong parentage of British Gas (BG). Currently the company transports ~3.5mmscmd of natural gas in industrial cities of Surat, Ankaleshwar and Bharuch in Gujarat.

Presence in Gujarat’s industrial hub

With its network of ~3300kms pipeline and ongoing capex, GGAS has made a strong footage in the three high growth cities of Gujarat. High industrial growth rate and unsaturated demand of ~50% in these cities should lead to robust growth in future.

Ability to pass price hike

GSPL is a pure Natural Gas transmission company which owns and operates pipeline network in Gujarat on open access basis.

Gujarat State Petronet Ltd. (GSPL) is the 2nd largest natural gas transmission company in India with ~1700kms pipeline network that forms the backbone of Gujarat’s gas infrastructure. GSPL operates on open access basis and currently transports ~36mmscmd of natural gas (58% of total consumption in Gujarat).

Play on Gujarat’s industrial growth

Gujarat, accounts for 40% of India’s natural gas consumption(62mmscmd) and is known as gas capital of India. Monopolistic nature of pipeline business coupled with robust industrial growth in the state promises increasing volume for GSPL. Gujarat government’s initiatives to attract further investments in the state augur well for GSPL with improving NG supply scenario in India.

GAIL is increasing its pipeline network from ~7000kms in FY10 to ~14,000 kms by FY14. This should result in increasing their transmission capacity from ~150mmscmd to ~300mmscmd.GAIL with their cross country pipelines should maintain its leadership position in India. We expect their transmission volume to increase with increasing supply in India from domestic and imports.