Shares of Indraprastha Gas Limited (IGL) surged nearly 5% after UBS made a significant upgrade in its rating for the company. The brokerage shifted its stance from “Sell” to “Buy,” reflecting increased confidence in IGL’s future performance. UBS also raised its target price for the stock to ₹700, a substantial 75% increase from the previous target of ₹400.
This positive outlook comes as UBS anticipates a stronger growth trajectory for IGL. While the company saw a modest 4% year-on-year growth in FY24, UBS expects the growth rate to accelerate to 8.2% CAGR from FY24 to FY27, supported by the company’s infrastructure expansion and new market entries.
Previously, UBS had concerns about potential risks tied to electrification and slowing growth. However, it now believes these challenges are manageable and sees strong near-term fundamentals for IGL. The firm also noted the potential for mergers and acquisitions, which could further boost the company’s value.
At 9:22 am, IGL’s shares were trading 4.63% higher at ₹554.40 on the NSE.
