Indraprastha Gas Limited (IGL) is seeing 7?8% yoy growth in CNG/PNG volumes, which seems sustainable on an increase in private vehicle and taxi conversions, strong growth in the domestic PNG segment, and stable industrial PNG. Addition of new buses can accelerate this growth rate to 10%+ while industrial and corporate cab conversions in NCR satellites, and the return of Gurgaon and new areas are potential longer?term triggers. Margins are steady due to weak domestic gas prices. Higher gross margin from disciplined pricing can help offset increase in opex and rupee depreciation. We build 8% volume CAGR in FY16?18 (vs. 7% earlier) and slightly higher EBITDA/scm of Rs 5.3 (vs. Rs 5.2). We raise our FY17/18 EPS by 4%/5% and DCF/SOTP?based target price to Rs 650 (from Rs 630). We remain bullish on the city?gas? distribution sector due to a cyclical volume and margin recovery from lower gas prices and structural triggers. Phillip Capital downgraded IGL to Neutral from Buy due to limited upside. They recommend investors subscribe the Mahanagar Gas IPO (MGL IPO note) considering its attractive valuation.Trendlyne has 12 reports on IGL updated in the last year from 6 brokers with an average target of Rs 613.7. Brokers have a mixed rating for IGL with 2 downgrades in past 12 months even though there have been 4 price upgrades in the past 6 months.