News

ICICI Securities research report on Indraprastha Gas

Indraprastha Gas (IGL) reported ~27/31% dip in Q4FY25 EBITDA/PAT, but earnings were still ahead of I-Sec estimates, helped by a small beat on adjusted EBITDA/scm (INR 4.6/scm vs I-Sec est of INR 4.3/scm). Reported earnings were helped by INR 1.14bn reversal of provisions (settlement of an older dispute related to CY19-21). FY25 adj EBITDA/PAT of INR 18.65/13.8bn declined 22/21%, respectively, due to sharply lower margins on APM gas de-allocation. Volume growth of 6.7% in FY25, however, is positive and guidance of 8-9% growth for next 2-3 years is supported by multiple factors over FY26-28: i) Stronger CNG conversion, ii) tie up of higher term LNG, negating spot LNG requirements, iii) growth from industrial/commercial segment and iv) aggressive infra expansion, specifically in new areas. Valuation is also attractive; reiterate BUY with TP of INR 255.

Outlook

However, we note FY25 volumes have surprised positively and despite the reduction in APM volumes, a combination of lower LNG prices, still competitive pricing vs petrol/diesel and aggressive growth from newer areas can drive better-than-expected growth over FY26-30E. Given the sharp 20% dip in stock price in the last one year, current valuations of 15.5x FY27E PER and 8.7x EV/EBITDA, are unchallenging. With a robust 38% upside implied by our revised TP of INR 255/sh vs CMP, maintain BUY.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Indraprastha Gas - 29042025 - icici

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Sensex Today Jammu Kashmir News Live Canada Election Results Q4 Results 2025 Live Ather Energy IPO GMP India at UN Gold Price HDFC Bank Market Cap Paytm First Games IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.