Jefferies has maintained its Buy rating on Indraprastha Gas Limited (IGL) share price, with a target price of ₹252 per share, indicating a 30% upside from the current market price (CMP) of ₹193.95.
The brokerage highlights that IGL’s stock price has declined by 30% since October, bringing its valuation below (-)1 standard deviation of its long-term forward price-to-earnings (PE) average. This sharp correction presents an attractive risk-reward opportunity for investors.
Jefferies also noted that IGL has expressed interest in bidding for HPHT (High Pressure, High Temperature) gas from ONGC, a move that could support margin defense and aid volume growth. Additionally, the brokerage expects a price hike in the near future, which could further help stabilize profitability.
However, any sudden reduction in APM (Administered Pricing Mechanism) gas allocation remains a key downside risk for the company.
With valuation support, expected price hikes, and a focus on securing additional gas supply, Jefferies sees strong potential for IGL’s stock price to recover in the medium term.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.