IGL Share Price: Check what brokerages say and targets for this stock here
IGL Share Price: Check what brokerages say and targets for this stock here
On the back of satisfying quarter four results despite business being impacted by covid, the brokerages are bullish on Indraprastha Gas Limited (IGL), which reported a jump of 31 per cent in its Q4 profit of FY21 on Friday.
In this regard, Macquarie maintained an Outperform rating on IGL and raises the target to Rs 600 apiece and FY23 EPS by 6 per cent on a better margin outlook. It expects faster recovery post second wave of Covid-19.
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While Morgan Stanley sees upside risks to earnings growth for IGL and maintains an Overweight stance with a target of Rs 650 per share. It points out, the company reported earnings beat on better volume growth and cost control.
On the other hand, Nomura maintains a Buy call on IGL with an expectation of upside risks to FY22-23 earnings. It raises the target to Rs 650 per share and expects city gas companies to pass the bulk of sharp domestic gas price hike in the second half of FY22.
Similarly, CLSA also upgrades IGL to Buy as it finds the company a good re-opening play with a rebound in mobility. While raising a target to Rs 630 per share, the brokerage says recent underperformance to Mahanagar Gas Limited and Gujarat Gas provides a good entry point to IGL.
In the same line, Citi as well continues to have Buy call on IGL, with a price target of Rs 630 per share. It mentions underlying performance better, with volumes ahead of estimates, moreover, volumes are back above pre-covid levels.
IGL, India's largest CNG distribution company, reported a profit of Rs 322.08 crore in the March-ended quarter as compared to Rs 252.63 crore in the same period a year ago. In FY21, the company reported a net loss of 11 per cent as the volumes were heavily impacted by last year's Covid-19 lockdowns.
The board of IGL recommends a dividend of 180 per cent for consideration of the members in the annual general meeting, the company said in its filing to exchanges. IGL shares on Friday closed flat but negative to Rs 513 per share.
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