IGL: Does this stock have some upside?

The recent change in the government’s stance, under which domestic supply for the priority sector has been increasing, is beneficial for the priority sector volume-heavy players like IGL

Nitin Sharma
September 05, 2022 / 05:51 PM IST
IGL: Does this stock have some upside?

Representative image (Image: Shutterstock)

PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

The Q1FY23 results of IGL (Indraprastha Gas; CMP: Rs 415.75; Market Cap: Rs 29,103 crore) beat Street expectations. Revenue growth was led by an all-time high CNG volume of 5.9 mmscmd -- up 6.1 percent, sequentially, and a 28.9 percent jump in revenue realization. A sharp sequential decline of 13.2 percent in PNG (domestic) volume came as a surprise. Q1FY23 performance  (image) (image) (image) Domestic gas allocation  Under-allocation of domestic gas continues to be a problem for City Gas Distribution (CGD)...