Citi has reaffirmed its Buy rating on Indraprastha Gas Ltd (IGL) stock, setting a target price of ₹250, implying a 34% upside from its current market price (CMP) of ₹186.00. The brokerage cites comfortable gas supply allocation, upcoming CNG price hikes, and limited EV threats as key growth drivers.
Key takeaways from Citi’s report:
- Volume and margin guidance reiterated, signaling steady business growth.
- CNG price hike in Delhi expected in the coming weeks, boosting near-term revenue.
- Post-APM gas allocation cut, supply mix is now stable and comfortable, reducing uncertainties.
- EV adoption unlikely to be a major threat, as weak economics limit large-scale substitution of CNG vehicles.
Citi remains bullish on IGL stock, expecting strong volume growth and better margins amid favorable regulatory conditions and price adjustments in the CNG segment.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research before making any investment decisions.