17 Nov 2019 | 2:51 AM
Research Report
Monthly

Equity Research Report: Indraprastha Gas Ltd. - Company Update - Leveraging market leadership for growth and scalability

Indraprastha Gas Ltd. (IGL) is a JV between GAIL and BPCL; while Government of NCT of Delhi holds 5% equity. IGL operates in two segments - compressed natural gas (CNG) and piped natural gas (PNG). The CNG business (76% of FY18 sales) involves distribution of CNG to vehicles through gas stations. In PNG (24%), IGL supplies natural gas to homes and commercial/ industrial users.
12 Dec 2018 | 09:30 AM

IGL operates in a near monopolistic market and low penetration of CNG/ PNG provides significant opportunity to the company. Further, government’s focus on CNG/PNG (cleaner and cheaper fuel vs petrol/diesel) and network expansion is likely to help the company achieve sales and PAT CAGR of ~20% and ~18% respectively (FY18-21E). We recommend Buy with a target price of Rs 315.