Indraprastha Gas, a leading CNG and PNG supplier, has fixed the record and allotment date for its first ever bonus issue. IGL is going to reward investors with 1:1 bonus issue of shares. Currently, the LPG maker is trading below Rs 400 on BSE, with market cap around Rs 27,700 crore. IGL will be in focus ahead for its upcoming Q3 results announcement.
Indraprastha Gas Share Price:
After market hours of January 21, IGL stock stood at Rs 395.55 apiece, down by 1.6% on BSE with market cap of Rs 27,688.53 crore. The stock's 52-week high and low is at Rs 570.60 apiece and Rs 306.50 apiece respectively.
IGL shares have a price-to-equity ratio of 17.23x, while return on equity is at 17.13% as of January 21, 2025.
Indraprastha Gas Bonus Issue:
As per the regulatory filing, on January 21, IGL announced that it has fixed Friday, January 31, 2025, as the "Record Date" to determine the eligibility of shareholders for issuance of the said Bonus Shares. Accordingly, the deemed date of allotment shall be Monday, February 03, 2025 for the purpose of allotment of said Bonus Shares of the Company.
IGL has announced its first ever bonus issue in the ratio of 1:1, meaning, the company will issue 1 (one) Bonus Equity Shares of face value of z 2/- each fully paid up for every 1 (one) existing equity shares of face value of z 2/- each fully paid up, to the eligible shareholders.
Indraprastha Gas Q3 Results Preview:
The company's board of directors are scheduled to meet on January 27, 2025, to consider and approve the Notice of Board Meeting to consider and approve the Unaudited Financial Results for the quarter ended December 31, 2024.
In its latest preview note, JM Financial said, " IGL's 3QFY25 EBITDA could decline by a sharp ~40% QoQ as we expect EBITDA margin to decline sharply to ~INR 3.6/scm (from INR 6.5/scm) on account of sharp ~30% APM allocation cuts and limited CNG price hike (no hike in Delhi); volume growth is expected to be steady at 1.2% QoQ and 7.7% YoY (at 9.1mmscmd)."
For IGL, the brokerage assumed a CNG volume of 630mmscm (up 1% QoQ and 8.2% YoY), PNG volume of 210mmscm (up 1.7% QoQ and 6.1% YoY) implying overall volume of 840mmscm or 9.1 mmscmd (up 1.2% QoQ and 7.7% YoY). Also, margins (EBITDA/scm) to be lower QoQ at INR 3.6/scm (vs. INR 6.5/scm in 2QFY25) on account of sharp ~30% APM allocation cuts and limited CNG price hike (and NIL price hike in Delhi).
Should You BUY Indraprastha Gas Stock?
However, JM Financial has recommended SELL on IGL stock for a target price of Rs 350.
While as per Trendlyne data, the consensus recommendation from 32 analysts for Indraprastha Gas Ltd. is HOLD. EPS is expected to reduce by 12.2% in FY25. The average 1-year target price is at Rs 431.25 on IGL, signalling nearly 9% potential upside ahead.
Meanwhile, brokerage Geojit has recommended to Accumulate the stock.
Geojit's note said, "The company has reported decent growth in topline during the quarter. However, its margin and profitability were dented by higher input costs. Nevertheless, volume growth is recovering well and the management expects volume to grow around 810% in FY26. Additionally, IGL is in talks with various gas suppliers to meet its short- and long-term demand. Through diversification initiatives, the company is aiming to strengthen its market position along with sustainable return. We, therefore, upgrade our rating to ACCUMULATE on the stock, with a revised target price of Rs. 438 based on SOTP methodology."
About Indraprastha Gas:
Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). IGL continues to augment its infrastructure so as to meet the increasing demand of CNG arising out of growing number of CNG vehicles in Delhi. The growth drivers for increase in demand of CNG are - car manufacturers coming up with CNG variants and Delhi Government's directive making it mandatory for all LCVs operating in Delhi to run on CNG. The company is in the process of enhancing its compression capacity by adding new stations.
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