Fundamentals

INDRAPRASTHA GAS LTD.

Ticker : 532514
BUY: Rs. 348
Target: Rs. 390



Indraprastha Gas Ltd is engaged in the distribution of CNG and Piped Natural Gas in Delhi to consumers in the domestic, transport, and commercial sectors. The company has reportedly introduced the Type 3 CNG cascade mounted on a CNG-driven MGV in collaboration with Tata Motors. The Type 3 cascade is a structured bunch of aluminium-lined, carbon fibre-wrapped cylinders. The sales volume has grown for both CNG and PNG on a YoY basis. In Q4FY19, the company reported net sales of Rs 1701.09 crore, up 27 per cent on a YoY basis. The PBIDT was seen at Rs 331.2 crore in Q4FY19, up by 13.84 per cent from Rs 290.93 crore. The PAT grew by 29 per cent to Rs 225.5 crore as compared to Rs 174.72 crore posted Q4FY18. Keeping in mind the CNG volume growth and the strong financials, we recommend a BUY.