Buy Indraprastha Gas; target of Rs 378: Prabhudas Lilladher
Prabhudas Lilladher’s research report on Indraprastha Gas
We maintain our estimates for FY20 & FY21. IGL remains a play on rising pollution concerns. Expanding geographical reach coupled with increased cars/taxis conversion and new bus additions in Delhi will drive earnings. Also, report of ban on competing industrial fuel is a major positive. We see limited threat to recent concept paper released by PNGRB to allow new players in existing geography given high entry barriers and concerns on allocation of subsidized APM gas.
Reiterate “BUY” with a three-year DCF-based PT of Rs378 (Earlier Rs360) on rollover.
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