Motilal Oswal Upgrades IGL Rating to BUY, Sets ₹225 Target; ICICI Securities Sets ₹255 Target, Citing CNG Price Increases.
IGL Stock Target Update: April 2025 saw positive trends in the Indian stock market, with major stocks, particularly in the IT and oil & gas sectors, performing well. Meanwhile, brokerage firms revised their ratings for Indraprastha Gas Limited (IGL) stock. Motilal Oswal and ICICI Securities expressed positive sentiment towards the company's stock, both assigning a 'BUY' rating and recommending investment in Indraprastha Gas shares.
Motilal Oswal's Report: Up to 21% Increase Projected for IGL Stock
Motilal Oswal upgraded its rating for Indraprastha Gas Limited (IGL) stock from 'Neutral' to 'BUY'. The report sets a target price of ₹225 for IGL stock, approximately 21% higher than the current price. This is attributed to the expected stabilization of the company's EBITDA margin and increases in CNG prices.
The brokerage stated that the company's EBITDA margin has reached its bottom and its valuation is becoming attractive. Considering a projected 2.7% dividend yield and 9% EPS growth by FY27, the firm revised its rating to 'BUY'.
Motilal Oswal's Projections
- CNG price increases of ₹1 to ₹3 will support the company's margins.
- Projected CAGR growth of 11% and 9% in EBITDA and PAT, respectively, between FY25 and FY27.
- Target price of ₹225 set for the stock.
ICICI Securities' Stance: IGL Stock Could Reach ₹255
ICICI Securities maintained a 'BUY' rating on Indraprastha Gas Limited, raising its target price to ₹255 from ₹240. This implies a potential upside return of 38% for investors in IGL shares.
ICICI Securities noted that lower CNG and LNG prices compared to petrol and diesel, and aggressive growth in new areas, could benefit the company. Furthermore, the stock's approximately 20% decline over the past year makes its valuation currently attractive.
IGL's Recent Financial Performance
Q4 Results: In the January-March 2025 quarter, the company's profit decreased by 8.8% to ₹349.23 crore, compared to ₹382.80 crore in the same quarter of the previous year. However, the company's profit increased by 22.2% quarter-on-quarter.
For the full fiscal year 2023-24, the company's net profit was ₹1,748.08 crore, compared to ₹1,445.02 crore in the previous year.
Brokerage Firms' Expectations for IGL Stock
Brokerage firms believe that IGL shares show potential for stability and growth in the coming years. Increased CNG prices will improve the company's margins, and its valuation is currently very attractive. This could yield good returns for investors.
Brokerages believe that IGL stock performance could improve over the next two years, and the attractive valuation could benefit investors.
Current Status of IGL Shares
- 52-week high: ₹285
- 52-week low: ₹153
- Current stock price: ₹185 (today's closing price)
- Market cap: ₹26,096 crore
The stock has declined by 10.69% in the last six months and 19.34% in the last year.
