Shares of Indraprastha Gas Limited (IGL) are expected to remain in focus after brokerage firm CLSA maintained an ‘Outperform’ rating on the stock, with a target price of Rs 220 per share.
According to CLSA, IGL’s fourth quarter (Q4) profit after tax (PAT) came in at Rs 3.5 billion, notably ahead of estimates, driven by a one-off provision reversal. Even after adjusting for the one-off, the PAT was still 5% higher than estimates due to a strong beat on unit margins.
However, CLSA noted that the positive earnings surprise was partially offset by a 3% miss in volumes. IGL reported fourth quarter volumes of 9.18 million metric standard cubic meters per day (mmscmd), which missed the management’s guided exit rate.
The stock is currently trading at Rs 178.40 per share.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.