409.45 2.90 (0.71%)
NSE Oct 29, 2020 12:44 PM
Volume: 993.7K

Indraprastha Gas Ltd.    
15 Sep 2020
Motilal Oswal
Delhi Transport Corporation plans to induct an additional 1,000 CNG buses (~116 buses would be added by end-Sep20) by the end of this fiscal. Delhi currently has ~6,000 buses totally, and IGL expects ~2,500 CNG buses to be introduced over next 2-3 years (apart from 1,000 mentioned above). Also, IGL expects EBITDA margin growth of 34% per year going ahead (as the company expects gas prices to remain benign in the near term). IGL anticipates 34 court hearings for finalizing the valuation part of Gurugram, and expects the deal to be completed by end-FY21. Gurugram has volumes potential of 22.5mmscmd and is currently operating at 0.4 0.6mmscmd. The company does not plan on reducing planned capex, although it may review capex during the mid-year review. Indraprastha Gas Capex from FY22 onwards could be ~INR12b, and expect another ~INR3b capex over the next two years if Gurugram is awarded.
Indraprastha Gas Ltd. is trading below it's 100 day SMA of 409.5
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