Indraprastha Gas - Poised For A Strong Comeback: Prabhudas Lilladher

An employee refuels a vehicle with compressed natural gas at an Indraprastha Gas Ltd. gas station in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

Indraprastha Gas - Poised For A Strong Comeback: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

Indraprastha Gas Ltd. underperformed the broader index by 20% over last one year, as restricted vehicular movement during pandemic hit FY21 compressed natural gas volumes by 22.5% YoY (CNG accounts for ~70% of the company’s overall FY21 volumes).

However, we expect CNG sales to rise going ahead given-

  1. receding pandemic concerns,

  2. expanding vaccination coverage,

  3. continued preference for personal mobility,

  4. favorable fuel economics (CNG ~70% cheaper to petrol) and

  5. introduction of 1,000 new CNG buses in Delhi will drive 23% compound annual growth rate volume and earnings over FY21-23E.

Click on the attachment to read the full report:

Prabhudas Lilladher IGL Company Update.pdf

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