Indraprastha Gas Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 39042.54 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1738.30 Crore, up 18.09 % from last quarter Total Income of Rs 1472.07 Crore and up 9.76 % from last year same quarter Total Income of Rs 1583.79 Crore. Company reported net profit after tax of Rs 331.00 Crore in latest quarter.
Investment Rationale
The environmental concerns in Delhi had brought forth the urgency of using cleaner fuels, putting the company in a sweet spot. IGL has a unique identity of a company with a rare mix of volume growth and strong margins. While sales volume recovered in Q4FY21, sales dipped in the current quarter. Sales volume is expected to recover in Q2FY22E with easing restrictions. The brokerage maintains HOLD recommendation on the stock. It values standalone IGL at Rs 549/share (25x FY23E EPS) and investment in Central UP Gas (CUGL) and Maharashtra Natural Gas (MNGL) at Rs 46/share to arrive at an unchanged target price of Rs 595.
Promoter/FII Holdings
Promoters held 45 per cent stake in the company as of March 31, 2021, while FIIs held 23.8 per cent, DIIs 15.8 per cent and public and others 15.4 per cent.
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