Midcap Gas & Petroleum Sector Stock To Buy For Up To 102% Gains, Says Ventura Securities

Ventura Securities in its recent report on Indraprastha Gas Ltd. assigns "Buy" to the stock with a target price of Rs 1,009/share. Considering the given target price and the current market price of the stock, it can fetch up to strong 102% gains. This is one of India's leading natural gas distribution company that supplies natural gas as cooking and vehicular fuel. It is a midcap company having a market capitalisation of Rs 34,646.54 crore.

Stock Performance & Outlook

The stock of Indraprastha Gas today opened at Rs 500/share, currently trading at Rs 488.50/share, down 1.30% from the previous close of Rs 494.95/share. Its 52 week low is Rs 335.35/share and 52 week high is Rs 501.25/share, respectively. It has given 5.83% positive return in 1 week and 14.52% in 1 month, respectively. In the past 1 year, it has given 25.73% positive return, 7.54% in 3 years and the highest 68.9% in 5 years, respectively.

Riding the volume growth, Buy for a target price of Rs 1,009/share

Ventura Securities said, "We re-initiate coverage on IGL with a BUY for a price target of Rs. 1,009 (13x FY26 EV/EBITDA) representing a potential upside of 105% from the CMP of Rs. 491. We expect IGL to report an NG 4 year CAGR volume of 13% to 4,155 million SCM by FY26. Taking into consideration a benign pricing environment and a stable EBITDA per SCM (INR 8-9 per SCM), we expect a 4-year CAGR Revenue/EBITDA/PAT of 25%/16%/15% to INR 18,820/3,380/2,598 crores over the period FY22-26."

Disclaimer - The stock has been picked from the brokerage report of Ventura Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.