Buy Indraprastha Gas Ltd., target price Rs 500 : JM Financial

JM Financial has buy call on Indraprastha Gas with a target price of Rs 500. The current market price of Indraprastha Gas is Rs 425.8.

Indraprastha Gas, incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 29823.53 Crore) operating in Gas & Petroleum sector.

Indraprastha Gas key Products/Revenue Segments include Gas Natural and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3973.01 Crore, up 23.21 % from last quarter Total Income of Rs 3224.59 Crore and up 112.09 % from last year same quarter Total Income of Rs 1873.24 Crore. Company has reported net profit after tax of Rs 357.15 Crore in latest quarter.

The company’s top management includes Mr.Sanjay Kumar, Mr.Pawan Kumar, Mrs.Saroj Bala, Mr.Deepak Mishra, Mr.Ramesh Narain Misra, Mr.R K Jain, Mr.Ashish Kundra, Mr.Rajib Sekhar Sahoo. Company has Datta Singla & Co. as its auditors. As on 30-09-2022, the company has a total of 70 Crore shares outstanding.
Investment Rationale

Despite high gas price posing near-term headwinds to CGD companies’ margin/volume, the brokerage reiterates BUY on IGL due to: a) robust pricingpower, and b) steady volume growth story.

Promoter/FII Holdings
Promoters held 45 per cent stake in the company as of 30-Sep-2022, while FIIs owned 20.34 per cent, DIIs 20.1 per cent.