IGL shares surge 7% after Q4 results. Should you invest?
Indraprastha Gas (IGL) shares surged 7% after reporting a 16% YoY profit increase to Rs 383 crore in Q4. Despite revenue decline due to lower gas prices, sales volume rose
of () today jumped 7% to the day’s high of Rs 468.20 on after the company reported a 16% year-on-year (YoY) increase in its fourth-quarter to Rs 383 crore. The seem to be maintaining a neutral stance on the .Increased sales ensured an increase in profit. The volume in the increased to 8.73 million metric standard cubic metres per day (MMSCMD) in the fourth quarter, up 7% from 8.25 MMSCMD in the year-earlier period. Revenues, however, fell 2% to Rs 3,949 crore as international gas prices cooled off.
Keeping in view an increase in the profit but a decline in , brokerages have not painted a positive image for the stock. Here is what they have to say:
Total volumes for IGL were in line with the brokerage’s estimates at 8.73mmscmd (+6% YoY) while EBITDA/scm came in below the estimate at Rs 6.6 (vs. Motilal’s estimate of Rs 7.2). PAT stood at Rs 380 crore (In line with estimates), supported by higher-than-estimated other income.
The brokerage has a ‘sell’ view on the stock, however, the target would be determined after the analyst meeting.
On valuation grounds and due to IGL’s decent pricing power and steady volume growth story based on its existing lucrative NCR market and expansion into new, lucrative nearby cities and intercity traffic, JM maintained a ‘buy’ rating on the stock, keeping the target price unchanged at Rs 470.
Also read: JSW Energy shares jump nearly 6% after Q4 results. Here’s what brokerages say
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
