Gas Distribution
Gas Distribution
from 148 today
The outlook is constructive on IGL's medium-term prospects, supported by resilient volume growth, continued expansion in newer geographical areas and the recent CNG price hike. Based on our revised SOTP valuation, we arrive at a target price of ₹168 and upgrade the stock to ACCUMULATE rating.
Q1FY27 EBITDA was broadly inline with estimates at INR3.0bn, down 30.1% QoQ due to higher gas input costs, while CNG volume growth remains healthy. Maintain Buy with a revised target price of INR178/share.
Indraprastha Gas saw a decrease in Q1FY27 EBITDA/PAT due to disruptions in the gas supply mix and sharply higher gas costs. We maintain BUY with a revised target price of INR 240, driven by stronger CNG penetration, regulatory changes, and new area momentum.
Indraprastha Gas reported in-line 1QFY27 performance with total volumes up 6% YoY at 9.7mmscmd, though PAT came in 5% below estimate at INR1.9b. We value IGL at 13x Dec'27E SA P/E and add INR41/sh as the value of JVs to arrive at our TP of INR193/sh, maintaining our Buy rating.
IGL reported a weak 1QFY27 performance with EBITDA and PAT missing consensus estimates, driven by lower realizations and higher gas costs. While valuation at 14.5x 1HFY29E P/E appears attractive, volume and margin fundamentals remain weak, leading us to maintain our HOLD rating.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
