Shares of Indraprastha Gas Limited (IGL) declined over 3% from their intraday high of ₹180.55 to ₹173.76 in early trade on Friday, after analysts suggested that the government may once again reduce the allocation of APM (Administered Price Mechanism) gas to city gas distribution (CGD) companies. The stock was trading 0.64% lower at last check.
According to analyst commentary, the APM gas allocation is expected to fall to 40% from the current 50%. The gap will likely be filled by costlier gas sourced from new wells, which could lead to increased input costs for IGL and other CGD players.
This shift could weigh on IGL’s margins, as access to cheaper APM gas has been a key profitability driver for city gas firms. The market reacted quickly, with the stock slipping from its session high, indicating cautious sentiment around the policy development.
At the time of reporting, IGL was trading at ₹173.76, with a market cap of ₹243.39 billion and a P/E ratio of 14.33.
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