IGL hits 52-week high on Q3 show; likely curbs on pet coke bonus for co
MUMBAI: Shares of Indraprastha Gas (IGL) touched their 52-week high on Thursday after the company reported a 37% jump in net profit for the third quarter ended December on higher sales volumes and realisations.
Analysts said the possible ban on fuel and pet coke in the National Capital Region (NCR) would be another positive for the company. The stock could see further upsides in the coming months IGL shares rose up to 4.8% to Rs 1,026 on Thursday, its highest intra-day increase since December 15 last year.
The company , which is the sole supplier of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) in the NCR, reported better than expected increase in sales volumes buoyed by the regulatory push for CNG instead of petrol for vehicles. Three price cuts in natural gas in the last year by the central government translated into price cuts by the company which led to an increase in overall sales.
Yet another regulatory push that could work in favour of the company is the recent directive by the Supreme Court to check the use of fuel oil and pet coke in industrial furnaces.
The court has directed liquefied natural gas and electricity to be used as alternatives. The Environment Pollution Control Authority (EPCA) had estimated 30,000 MT of fuel oil being sold monthly in NCR which would be replaced by LNG and electricity if the ban comes into place.
“The total ban in fuel oil and petcoke could translate annually into a 3-4% growth for IGL“ said Sabri Hazarika, analyst at Phillip Capital.
Analysts said the possible ban on fuel and pet coke in the National Capital Region (NCR) would be another positive for the company. The stock could see further upsides in the coming months IGL shares rose up to 4.8% to Rs 1,026 on Thursday, its highest intra-day increase since December 15 last year.
The company , which is the sole supplier of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) in the NCR, reported better than expected increase in sales volumes buoyed by the regulatory push for CNG instead of petrol for vehicles. Three price cuts in natural gas in the last year by the central government translated into price cuts by the company which led to an increase in overall sales.
Yet another regulatory push that could work in favour of the company is the recent directive by the Supreme Court to check the use of fuel oil and pet coke in industrial furnaces.
The court has directed liquefied natural gas and electricity to be used as alternatives. The Environment Pollution Control Authority (EPCA) had estimated 30,000 MT of fuel oil being sold monthly in NCR which would be replaced by LNG and electricity if the ban comes into place.
“The total ban in fuel oil and petcoke could translate annually into a 3-4% growth for IGL“ said Sabri Hazarika, analyst at Phillip Capital.
