Company board has recommended the payment of dividend at 140 percent i.e. Rs 2.80 per share.
The CNG distribution company Indraprastha Gas (IGL) share price fell over 3 percent in early trade on June 18 after the company declared its Q4 numbers.
The company on June 17 has reported a 27.5 percent jump in its consolidated net profit at Rs 290.76 crore versus Rs 228 crore in the year-ago period, while revenue was up at Rs 1,711.2 crore versus Rs 1,701 crore.
The company's board has recommended the payment of dividend at 140 percent i.e. Rs 2.80 per share (face value of Rs 2 each) for the financial year 2019-20, subject to the approval of shareholders in the ensuing Annual General Meeting.
CLSA | Rating: Outperform | Target: Cut to Rs 525 from Rs 570
The company is the best volume growth story in the city gas space but premium valuations make us prefer MGL & Gujarat Gas, said CLSA.
Morgan Stanley | Rating: Overweight | Target: Rs 471
The company showed good earnings & volume resilience, while growth in sales to households is negating the impact of weaker CNG, reported CNBC-TV18.
The company is expanding rapidly with growing infrastructure.
Macquarie | Rating: Downgrade to neutral | Target: Rs 485
According to Macquarie, the stock is now fully valued and it doesn’t see much impact on the company’s long-term growth outlook, reported CNBC-TV18.
It has lowered FY21 EPS estimate by 14 percent to reflect lower demand in Q1, while the pecking order is MGL, Gujarat Gas and IGL.
Credit Suisse | Rating: Neutral | Target: Rs 410
The volumes are likely to be weak, while input gas prices are expected to decline further by 20-25 percent from October.
Jefferies | Rating: Hold | Target: Rs 450
It was a robust Q4 with volumes coming 11 percent ahead of estimate. Jefferies expects normal volumes from Q3 along with 8 percent CAGR over FY20-22E, reported CNBC-TV18.
The recovery in volumes & margin expansion are priced in, it added.
At 09:26 hrs, Indraprastha Gas was quoting at Rs 461.75, down Rs 12.15, or 2.56 percent on the BSE.Live Webinar: Moneycontrol Rule the New Normal, powered by Lenovo. Click Here.
