Morgan Stanley has reiterated its Overweight rating on Indraprastha Gas Limited (IGL) with a target price of ₹575, indicating a potential upside of 42% from the current market price of ₹404.15. IGL reported its highest-ever CNG volume, which grew by 9% year-over-year, marking a significant rebound after nearly two years of stagnant growth, suggesting that the impact from the transition of buses to electric vehicles has diminished.
Additionally, industrial volumes increased by 11% year-over-year, further boosting total volume growth to 9% for the quarter. The EBITDA margin was reported at ₹6.4 per standard cubic meter (scm), which, while lower than peak levels, remains above midcycle levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
