Buy Indraprastha Gas, target price Rs 395: ICICI Direct

ICICI Direct has buy call on Indraprastha Gas with a target price of Rs 395. The current market price of Indraprastha Gas is Rs 366. Time period given by analyst is one year when Indraprastha Gas Ltd. price can reach defined target.

Indraprastha Gas Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 25553.53 Crore) operating in Gas & Petroleum sector.

Indraprastha Gas Ltd. key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 2245.83 Crore, up 19.89 % from last quarter Total Income of Rs 1873.24 Crore and up 52.56 % from last year same quarter Total Income of Rs 1472.07 Crore. Company reported net profit after tax of Rs 308.52 Crore in latest quarter.

Investment Rationale
Shortfall in APM allocation and higher spot LNG prices will impact the company in the near term. The brokerage estimates gross margins at | 11/scm and | 11.6/scm in FY23E and FY24E, respectively. It retains BUY rating on Indraprastha Gas on account of better volume growth prospects in medium to long term

Promoter/FII Holdings
Promoters held 45.0 per cent stake in the company as of 31-Dec-2021, while FIIs owned 20.23 per cent, DIIs 16.67 per cent.