850% Dividends In 2023: PL Gives Buy On PSU Natural Gas Stock Trading Below Rs 400, 14% Upside Seen

Indraprastha Gas is among the leading government-backed LPG, CNG, and PNG suppliers in the country. This natural gas stock has witnessed significant correction in 2023 so far, which brings the opportunity of buying on dips. Prabhudas Lilladher is the latest to recommend buying IGL shares for a target price ranging from Rs 445-450. This would mean up to 14% potential upside is seen in IGL shares in the near term.

On December 1st, IGL shares ended at Rs 394.70 apiece, up by 1.5% on BSE with a market cap of Rs27,629.03 crore. During the trading hours of this day, the stock did cross the Rs 400 mark before correcting. This trading week, the stock however witnessed a muted performance.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher on Friday in a note said, "The stock has witnessed a big erosion one month back and after that, it has consolidated maintained a good support zone near 375-385 levels."

The analyst added, "Currently has indicated a pullback with a positive candle formation on the daily chart to improve the bias with a triangular breakout indicated. The near-term target would be 415-420 zone and further if strength sustained can carry the stock to attain targets of 445-450 zone."

"One can buy and accumulate the stock, maintaining the support near 380 levels and anticipate further rise in the coming days with the chart looking attractive technically," the analyst said.

Recently, IGL and IndusInd Bank joined hands to facilitate the acceptance of Digital Rupee, the Central Bank Digital Currency (CBDC) launched by the Reserve Bank of India in 2022. This collaboration will enable customers at select IGL stations in Delhi NCR, to make payments using the Digital Rupee, fostering the use and acceptance of India's Digital Currency. Further, through UPI interoperability, customers can scan any UPI QR using their Digital Rupee App across all IGL CNG stations.

IGL is also among dividend-paying stocks. In 2023, so far, IGL has paid up to Rs 15 dividends per share in three interims. In percentage terms, the total payout is about 850%.

IGL is backed by strong government-owned promoters like GAIL and BPCL. It plans to provide natural gas in the entire capital region.

IGL is currently celebrating the 25th Year of its incorporation. The role of IGL in checking the vehicular pollution in the National Capital Region is well acknowledged both at national as well as international forums. IGL has laid out its city gas distribution infrastructure in Delhi,
Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Karnal, Kaithal, Fatehpur, Ajmer, Pali, Rajsamand, Hamirpur, Shamli, Muzaffarnagar, Banda and parts of Kanpur and Meerut which consists of more than 23000 Kms of pipeline network.

IGL is meeting the fuel requirements of over 1.6 million vehicles running on CNG through a network of 782 CNG stations. IGL has connected over two million households in these cities with PNG.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.