Indraprastha Gas Ltd. share price target

IGL numbers were a positive surprise on volume and margin front. IGL reported volume growth of 12.9% to 4.9 MMSCMD. Lower gas cost enabled margin expansion and operating leverage ensured operating margin expansion. Going forward, we believe that IGL can deliver double digit volume growth for next couple of years. Increase in the number of CNG stations would propel CNG volumes. Increase in the industrial activity can further propel industrial volumes. We reiterate...

Indraprastha Gas Ltd. (IGL) is engaged in retail gas distribution for supply of compressed natural gas (CNG) and piped natural gas (PNG) to domestic, industrial & commercial sectors in Delhi and National Capital Region. Incorporated in 1998, IGL is a Joint Venture of GAIL (22.5%) and BPCL (22.5%) and the Government of NCT of Delhi also holds 5% share. IGL's operations' in Delhi has expanded from 9 CNG stations in 1999 to 421 as of now and the customer base has increased from 1000 to more than 7 lakh...

IGL's Q4FY17PAT at Rs 1.3 bn was marginally lower than our estimate, as higher volume growth at 17% YoY (our est. 15%) was offset by decline in EBITDA margin.

Addition of buses to trigger CNG volume growth: The total number of buses running under Delhi Transport Corporation (DTC) is approximately 5800. In order to increase the base, the Delhi government is aiming to add mini and midi buses as they are quicker to acquire and creates less congestion on roads. The addition of buses is expected to be the major determinant for volume growth in CNG segment.

Revenue rose by 5.83% to Rs. 1001.89 Cr in Q4FY17 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research Indraprastha Gas (IGL) reported its Q4FY17 results, which were in line with our estimates on the topline front. Revenues recorded an increase of 13.1% YoY at | 1001.9 crore in line with our estimates. Volumes posted growth of | 16.1% YoY at 4.8 mmscmd above our estimate of 4.7 mmscmd. CNG volumes at 3.6 mmscmd (our...

IGL reported strong Q4 results, led by volume growth ( 17% YoY). EBITDA was at Rs 2.1bn ( 19%). Higher other income and no interest cost (co is debt-free, with strong FCF), boosted APAT to Rs 1.4bn ( 37%).

Pioneer of CGD Market in Delhi; Going Strong on Anti-pollution Drive: Addition of buses to trigger CNG volume growth: As per budget 2016-17, the government planned to add total 3000 buses: 1,000 low-floor-non-AC buses, 1,000buses under cluster scheme and another 1,000 buses in the premium category. However, the government failed to add any buses last year to the existing fleet of DTC (Delhi Transport Corporation) as many officials considered it to be unfeasible plan.

IGL's Q3FY17PAT at Rs 1.4bn was higher than our estimate as volume growth at 15% YoY (10% expected) surprised us positively. Volume growth was led by ramp-up of new CNG outlets (as guided by the Supreme Court) and pick-up in PNGvolume in Uttar Pradesh (weak LNG prices).