Citi has reiterated its ‘Buy’ rating on Indraprastha Gas Limited (IGL) with a target price of ₹620, suggesting a 15.7% upside from the current market price of ₹535.90. The brokerage is optimistic about the company’s growth prospects, noting that the building blocks for volume growth revival are falling into place.
Citi highlights that the vehicle scrapping policy, aimed at incentivizing CNG vehicles, is expected to benefit IGL, supporting higher CNG adoption. Additionally, the inter-state bus segment could see accelerated CNG conversions, which would further boost demand for IGL’s offerings.
The brokerage believes that these factors are likely to drive volume growth and improve the overall growth outlook for IGL, making it a compelling investment opportunity in the current market scenario.
Disclaimer: This information is for informational purposes only and should not be considered as investment advice.
