Please refer to important disclosures at the end of this report
Indraprastha Gas Limited (IGL), processes and distributes CNG and LPG. IGL
had received permission from the Haryana government to lay a city gas
distribution network in a part of Gurugram district. Going ahead with more such
permissions in other areas of Gurugram can boost the company’s prospects. Led
by strong focus on curbing pollution in the National Capital Region, CNG sales
volume is likely to grow strongly. Expected restriction on the usage of dirty fuel
would propel volume further for the company. Aggressive plans of DIMTS (Delhi
Integrated MultiModal Transit) to add buses and the Delhi government’s move
to introduce new blueline buses (last mile connectivity for Delhi Metro) will aid
CNG volume growth. Further acquisition of 50% stake in Maharashtra Natural
Gas (MNGL) will grant IGL entry into Pune with good growth potential. Also, the
PNG business represents a longterm opportunity with low penetration of ~10%
in the domestic segment. This opportunity is likely to boost IGL’s sales, as it
expands its geographical presence in Greater Noida, Ghaziabad, Sonepat, and
Panipat. IGL has been maintaining a healthy dividend payout of 20.10%. It has
reported a topline growth of 9% CAGR and bottomline of 15% CAGR over
FY2012-17. Further, the company is virtually debt free and also the cash flow
has improved from `612.11cr in FY2012 to `947.55cr in FY2017. IGL’s return
on equity (ROE) is 19.95% for FY17 TTM earnings. Hence Buy.
CMP `1517
52 Week High / Low
Avg. Daily Volume
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Indraprastha Gas Ltd
Others | Utilities
Sept 21, 2017
Indraprastha Gas Ltd |Utilities
June 5, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Indraprastha Gas
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)