ICICI Securities Initiates Buy On Midcap Gas Stock, Target Price Rs 615

Renowned brokerage firm ICICI Securities initiates a Buy on Indraprastha Gas Ltd., an energy sector company operating in the Gas industry, with a revised target price of Rs 615/share on the Indraprastha Gas for a potential gain of up to 31%.

Indraprastha Gas is a midcap Gas company having a market cap of Rs 32,949.04 Crore.

According to ICICI Securities, "Indraprastha Gas' (IGL) Q1FY24 EBITDA and PAT of INR 6.4bn and INR 4.4bn missed our estimates by 2% and 8% respectively, while beating street estimates by 3% on EBITDA. A less-than-estimated volume growth of ~4% vs expectations of ~6% drove the miss. Nevertheless, EBITDA and PAT rose by sharp 38% and 33% QoQ respectively. Volume weakness was due to lower domestic and 'industrial + commercial' (I/C) volumes, though as CNG volumes came in-line even in a traditionally weak quarter. Margins were strong, with an INR 2.3/scm QoQ improvement in gross and EBITDA/scm. "Going forward, we expect volume momentum to improve with resumption of schools likely to drive higher CNG demand, while softer prices are likely to drive higher domestic and I/C volumes. Our BUY rating stays, with a revised [DCF based] target price of INR 615/sh (earlier: INR 630/sh)," the brokerage has said.

The shares of Indraprastha Gas Ltd. closed 4.93% down at Rs 470.70 with intraday high & low of Rs 494.95 and 466.90 on BSE, respectively.

The shares declined 3.76% in 1 week, and 1.19% in 1 month, respectively. It gained 27.44% in 1 year, 15.54% in 3 years, and 66.47% in 5 years, respectively.

The stock traded its 52-week high on May 09, 2023, at Rs 515.55 apiece and 52-week low on July 29, 2023, at Rs 343.80 apiece, respectively.

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