Shares of
Gujarat Gas and
Indraprastha Gas gained up to 3 per cent in Monday’s trade after global brokerage
Macquarie raised its target price on the scrips.
The Australian broker said it continues to remain positive on Indian city gas space. Hence, it raised its target price on Gujarat Gas from Rs 240 to Rs 330 per share. This means a potential upside of nearly 20 per cent from the last close.
Macquarie while maintaining ‘outperform’ rating said the regulatory tailwinds will support volume growth for the company.
Meanwhile, the broker maintained its ‘neutral’ stance on Indraprastha Gas Limited (IGL) but raised the target price to Rs 485 from Rs 420. This translates into an upside of about 10 per cent.
It also raised earnings per share (EPS) estimates for the gas supplier by 5 per cent for fiscal 2021 and 9 per cent for 2022.
The IGL stock trades at 4.4 times fiscal 2022 estimate of price to book value and the target price is based on 4.1 times fiscal 2022 estimate of price to book value, Macquarie said.
At 9.48 am, IGL was trading at Rs 450.8, up 1.93 per cent and Gujarat Gas was up 2.52 per cent at Rs 283.10. The former has multiplied investors’ wealth about 10 times in the last 10 years and the latter has delivered 112 per cent in the last 3 years.