Indraprastha Gas - EV Versus CNG: Reliance Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Reliance Securities Report.Indraprastha Gas Ltd.'s volume clocked a robust 11% CAGR over FY15-FY20, driven by a strong 10%, 15% and 14% growth in CNG, domestic PNG and industrial/commercial segments, respectively. Mandatory CNG conversion of radio/inter-city cabs and LCVs and a strong rise in the number of DTC fleet were the key volume drivers in the past. Looking ahead, we believe IGL’s volume growth will be driven by: 1. expected ~1.7 mmscmd volume (32% of FY21 total sales volume) from new geographical areas;2. expected ~0.6 mmscmd volume (11% of FY21 total sales volume) led by pollution control norms to push the growth of PNG industrial in NCR; still a sizeable number of industries to switch to PNG industrial;3. likely savings of 51%/47% in CNG-fueled vehicles vs. petrol/diesel-driven vehicles, respectively, which will fuel the growth in conversion of cars to CNG; and4. PNG domestic gas prices are 37% cheaper than the LPG non-subsidised cylinder.In the near future, we do not see major threat to the conversion of cars to CNG. Based on our preliminary analysis, the total cost of ownership (TCO) of CNG cars is Rs 7/km, compared to Rs 11/km for electric cars..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indraprastha Gas - EV Versus CNG: Reliance Securities

Indraprastha Gas - EV Versus CNG: Reliance Securities

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