Buy Indraprastha Gas, target price Rs 596: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Indraprastha Gas with a target price of Rs 596. The current market price of Indraprastha Gas is Rs 442.

Indraprastha Gas, incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 30982.04 Crore) operating in Gas & Petroleum sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3973.01 Crore, up 23.21 % from last quarter Total Income of Rs 3224.59 Crore and up 112.09 % from last year same quarter Total Income of Rs 1873.24 Crore. Company has reported net profit after tax of Rs 357.15 Crore in latest quarter.

The company’s top management includes Mr.Sanjay Kumar, Mr.Pawan Kumar, Mrs.Saroj Bala, Mr.Deepak Mishra, Mr.Ramesh Narain Misra, Mr.R K Jain, Mr.Ashish Kundra, Mr.Rajib Sekhar Sahoo. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 70 Crore shares outstanding.

Investment Rationale
The brokerage is bullish on IGL and has it as its preferred pick within the oil and gas sector. Prabhudas Lilladher believes that IGL will be a big beneficiary if the Kirit-Parikh panel recommended cap on APM gas is implemented, because they account for 90% of the priority sector demand.

Promoter/FII Holdings
Promoters held 45.0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 20.34 per cent, DIIs 20.1 per cent.