Another PSU Stock Declares 500% Interim Dividend, Should You Buy Or Sell?

Leading PSU stock, Indraprastha Gas Ltd declared its 2nd interim dividend of 500% for FY 2023 and fixed March 31, 2023 as the record date. Last trading price of IGL is Rs 439.00 apiece. The zero-debt burden stock gave return of 7% in last 6-months and 17% return in last 1-year. The large cap stock operates in Gas & Petroleum sector. Check details below:

Indraprastha Gas Ltd Declares Dividend and Sets Record Date: According to the BSE filing of the company, "Further to our letter dated March 18, 2023, this is to inform that Board of Directors of the Company in its meeting held today has declared 2nd interim dividend @ 500% i.e, Rs.10/- per share (Face value of Rs. 2/- each) on the equity shares of the Company for the Financial year 2022-23. As informed vide letter dated March 18, 2023 the record date for ascertainment of shareholders entitled to receive the aforesaid interim dividend shall be March 31, 2023 (Friday)."

Indraprastha Gas Ltd Stock Performance & Return: Last trading price of IGL is Rs 439.00 apiece. Its 52-week high is Rs 455.00 apiece and 52-week low is Rs 335.10 apiece, respectively. Its market capitalisation is Rs 30,730.04 crore. The stock gave return of 9% in last 3-months, 17% in last 1-year, 43% in last 3-years, and 55% in last 5-years.

Brokerage Houses Viewpoints on Indraprastha Gas Ltd: According to Geojit's report dated Feb 15, 2023, investors can buy IGL share with target price of Rs 504. Geojit stated, "Hence, we maintain a positive outlook for the company and reiterate our BUY rating on the stock, with a rolled forward TP of Rs. 504 based on SOTP methodology."

Meanwhile, Motilal Oswal, in its report dated March 15, 2023, has given SELL call to IGL share with target price of 340 apiece. Motilal Oswal said, "We maintain our sell rating on the stock valuing it at 14x Dec'24E EPS and adding the value of investments at 25% holding company discount to arrive at our TP of INR340. Stricter mandate on adoption of natural gas by industries/ vehicles remains the key risk to our call."

Indraprastha Gas Ltd About: Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). Indraprastha Gas Ltd. (IGL), jointly promoted by Bharat Petroleum Corporation and Gas Authority of India, processes and distributes compressed natural gas (CNG) and liquefied petroleum gas (LPG).

Disclaimer:The stock has been picked from the brokerage report of Motilal Oswal and Geojit. Greynium Information Technologies and the author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.