Buy Indraprastha Gas, target price Rs 543: Geojit Financial Services

Geojit Financial Services has buy call on Indraprastha Gas with a target price of Rs 543. The current market price of Indraprastha Gas is Rs 460. Time period given by analyst is year when Indraprastha Gas price can reach defined target.

Indraprastha Gas, incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 32028.54 Crore) operating in Gas & Petroleum sector.

Indraprastha Gas key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 3807.51 Crore, up 1.46 % from last quarter Total Income of Rs 3752.62 Crore and up 18.08 % from last year same quarter Total Income of Rs 3224.59 Crore. Company has reported net profit after tax of Rs 438.40 Crore in latest quarter.

Investment Rationale
IGL reported a decent performance with sustained volume growth. Moreover, a decline in raw material cost would support margin expansion in the coming quarters. The brokerage believes earnings performance remains positive owing to volume growth momentum on the back of expansion plans and weakness in input cost.

Promoter/FII Holdings
Promoters held 45.0 per cent stake in the company as of 30-Jun-2023, while FIIs owned 21.94 per cent, DIIs 20.17 per cent.