Buy Indraprastha Gas, target price Rs 440: ICICI Direct

ICICI Direct has buy call on Indraprastha Gas with a target price of Rs 440. The current market price of Indraprastha Gas is Rs 367.45. 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 25732.03 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 31-03-2022, the company reported a Consolidated Total Income of Rs 2480.31 Crore, up 10.44 % from last quarter Total Income of Rs 2245.83 Crore and up 42.69 % from last year same quarter Total Income of Rs 1738.30 Crore. Company reported net profit after tax of Rs 358.60 Crore in latest quarter.

Investment Rationale
IGL's volumes are expected to increase 49.1% YoY and 2.3% QoQ. Total volumes are expected at 7.9 mmscmd (CNG: 5.8 mmscmd, PNG: 2.1 mmscmd). Due to a surge in gas costs, the brokerage expects Rs 1.2/scm YoY dip in gross margins to Rs 13/scm. Increase in gas costs are expected to be partially offset by higher realisation. EBITDA/scm is expected at Rs 7.3/scm, down Rs 0.6/scm YoY. PAT is estimated at Rs 349.2 crore, up 43% YoY


Promoter/FII Holdings
Promoters held 45.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 19.88 per cent, DIIs 16.91 per cent.