Jefferies upgrades IGL to ‘buy’, sees 32% upside; stock rises 3%

Global brokerage firm Jefferies has upgraded Indraprastha Gas Ltd (IGL) to a ‘Buy’ rating from ‘Underperform,’ significantly raising its target price to Rs 505, up from Rs 295, reflecting its positive outlook on the company’s prospects.

Following the upgrade, IGL's stock surged 3%, reaching an intraday high of Rs 394 on the BSE on Wednesday, January 29.

This substantial revision in outlook is driven by several key factors, including IGL’s success in securing significant long-term LNG contracts at favorable prices.


Additionally, Jefferies has revised its earnings per share (EPS) estimates upwards, increasing its projections for fiscal years 2026 and 2027 by 52% and 55%, respectively, underscoring expected strong profit growth.

Despite muted volume growth in the third quarter, Jefferies remains optimistic about IGL's overall outlook. The brokerage firm suggests that the near-term impact on Return on Capital Employed (ROCE) will be limited, implying that the company's profitability and efficiency are expected to remain healthy.

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IGL Q3 results

IGL reported a profit after tax (PAT) of Rs 325.42 crore for the third quarter ended December 2024, down from Rs 475.45 crore reported in the same quarter of the previous financial year.

However, the revenue from operations was reported higher at Rs 4,146,09 crore, up from Rs 3,926.19 crore reported in the year-ago period.

IGL share price performance

Over the past year, there was a decline of 4.56% in the shares of IGL, while the last six months experienced a significant decrease of 26.58%. For the three-month period, the stock recorded a drop of 4.27%.

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