Buy IGPL; target of Rs 295: Prabhudas Lilladher

Prabhudas Lilladher's research report on IGPL

IGPL’s reported Q2FY18 results with EBITDA of Rs601mn (PLe: Rs588mn) (+76%YoY, ‐14%QoQ) and PAT of Rs336mn (PLe: Rs332mn) (+66%YoY, ‐14%QoQ). During Q2, IGPL had initiated one‐month plant shutdown at one of their three plants for changing the catalysts. This resulted in lower PAN volumes of 34,000MT in Q2FY18 against 39,000MT in Q1FY18, which has since come back on stream. Also, for Q2FY18, higher other expenses of Rs261m (+44%YoY, ‐14%QoQ), due to catalyst changes impacted operating profits.

Outlook
We reiterate BUY with PT of Rs880 (Rs709 earlier) based on 15x FY19E.

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