Reduce Indraprastha Gas, target price Rs 438: ICICI Securities

ICICI Securities has reduce call on Indraprastha Gas with a target price of Rs 438. The current market price of Indraprastha Gas Ltd. is Rs 491.9. 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 34580.04 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 30-09-2021, the company reported a Consolidated Total Income of Rs 1873.24 Crore, up 32.82 % from last quarter Total Income of Rs 1410.32 Crore and up 27.34 % from last year same quarter Total Income of Rs 1471.05 Crore. Company reported net profit after tax of Rs 365.14 Crore in latest quarter.


Investment Rationale
Given IGL’s margin was lower at Rs5.75-7.6/scm in FY17-FY21, the brokerage cuts FY23-FY24E margin by 6% to Rs7.5/scm. Net impact of these changes is an upgrade in FY22E EPS by 6% and cut in FY23E EPS by 1% and target price by 7% to Rs438 (12% downside).

Promoter/FII Holdings
Promoters held 45.0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 21.88 per cent, DIIs 16.06 per cent.