Motilal Oswal: Indraprastha Gas - Looking For The Right Tilt Between Risk And Rewards

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We hosted senior management of Indraprastha Gas Ltd. for a non-deal roadshow.Between double digit growth for next four to five years and upcoming regulation on open access, finding the right tilt between reward and risk is a challenge. Key highlights below -As only essential service providers were allowed to operate over April–May during the Covid-19 led lockdown, Indraprastha Gas witnessed two months of poor volumes.Although, recovery was better than expected from June. Compressed natural gas volumes are currently at 85–90% of normal levels.However, the company expects volumes to normalize by the end of Q4 FY21. Our model assumptions were in line with management commentary.We have built-in 70%/85% of pre-Covid volumes for Q2/Q3 FY21 and normalization for Q4 FY21.Maharashtra Natural Gas Ltd. (MNGL) and Central U.P. Gas Ltd. (CUGL) have seen volume impact at levels similar to Indraprastha Gas.CUGL (Kanpur) has seen better recovery, while MNGL (Pune) has been drastically impacted due to extended lockdown; thus, expect a lag of one to two months in recovery in MNGL versus Indraprastha Gas..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 brokerage 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.

Motilal Oswal: Indraprastha Gas - Looking For The Right Tilt Between Risk And Rewards

Motilal Oswal: Indraprastha Gas - Looking For The Right Tilt Between Risk And Rewards

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