IGL shares rise after Re 1/kg hike in CNG prices; should you buy or wait?
CNG price hike news: Indraprastha Gas Limited (IGL) shares rose on Monday, June 24 after the gas distribution company announced an increase in Compressed Natural Gas (CNG) prices by Re 1 per kilogram.
IGL share price, Indraprastha Gas share price target, CNG price hike news: Indraprastha Gas Limited (IGL) shares rose on Monday, June 24 after the gas distribution company announced an increase in Compressed Natural Gas (CNG) prices by Re 1 per kilogram. Indraprastha Gas shares gained 1.6 per cent to the day's high of Rs 478.6 on NSE in morning deals. IGL shares closed at Rs 475.05, up 0.84 per cent on NSE.
The new pricing structure came into effect at 6 a.m. on June 22, resulting in an immediate impact on various regions across the country, including New Delhi, Uttar Pradesh, Haryana, Rajasthan, and the National Capital Region (NCR).
IGL share price target: Should buy or wait? Here's what Morgan Stanley says
Morgan Stanley has maintained an overweight on IGL with a target of Rs 575 per share. According to the global brokerage, amid global gas outages and decreasing APM gas allocation, IGL hiked CNG prices. As CNG remains attractive vs alternative fuels, the hike should support margin normalisaition.
"Investor confidence on growth should return as the EV policy overhang unwinds," Morgan Stanley said.
CNG price in Noida, CNG price in Delhi, CNG price Ghaziabad
In Delhi, the price has risen from Rs 74.09 to Rs 75.09 per kg, Noida, Greater Noida, and Ghaziabad, the prices have increased from Rs 78.70 to Rs 79.70 per kg and in Gurugram, Haryana, there has been no change in the CNG prices, which remain stable despite the hike in neighboring regions.
The price adjustment is expected to have a widespread impact on commuters who rely on CNG-powered vehicles, including auto-rickshaws, taxis, and personal vehicles.
The increase will likely result in higher transportation costs, which may subsequently affect daily travel expenses for millions of residents.
This is not the first time CNG prices have been raised in recent months. The frequent adjustments in CNG prices have been a cause of concern for consumers, who are already grappling with the economic pressures of inflation and fluctuating fuel costs.
The latest increase in CNG prices underscores the challenges faced by commuters and the transportation sector in navigating the complexities of the energy market.
tech and auto, visit Zeebiz.com.
(With agency inputs)
For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.