Recently, company hiked CNG prices by Re 1 per kg to make up for the additional cost incurred to keep stations coronavirus ready.
Indraprastha Gas (IGL) share price added 5 percent intraday on June 3 after Morgan Stanley maintained an overweight rating on the stock.
Morgan Stanley has maintained an overweight rating on the stock with a target at Rs 471 per share. CNG price hiked will help partly recover some of the fixed costs, reported CNBC-TV18.
Credit Suisse has maintained a neutral call with a target at Rs 410 per share.
The company has increased the retail price of CNG in Delhi by Re 1 per kg. The gross margins for the company are now close to MGL for the CNG segment and higher FY21 gross margin provides a buffer to absorb 9-10% volume decline.
The input gas prices could further decline by 20-25% from October, reported CNBC-TV18
Recently, the company hiked CNG prices by Re 1 per kg to make up for the additional cost incurred to keep stations coronavirus ready. The revised CNG price in the national capital from Rs 42/ kg to Rs 43/ kg, w.e.f. June 2, 2020. However, there will be no change in piped cooking gas prices.
At 12:18 hrs, Indraprastha Gas was quoting at Rs 494, up Rs 21.30, or 4.51 percent on the BSE.
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