2024-04-17 10:03:59 am | Source: Yes Securities Ltd.
Buy Indraprastha Gas Ltd For Target Rs.540 By Yes Securities
Weak performance on lower EBITDA spreads while overall volumes were in line
Our View
Indraprastha Gas Limited (IGL) reported a mixed Q3 FY24 performance, with Rs5.6bn EBITDA surpassing last year's figures by 31.7% YoY but falling short of our estimates. The Rs3.9bn PAT demonstrated robust 41% YoY growth but experienced a notable 26.7% QoQ decline. Despite meeting volume expectations, higher gas costs impacted EBITDA margins, signalling challenges. With the stock trading at 16.2x/15x FY25e/26e PER, we maintain a BUY rating with a target price of Rs 540/share, recognizing the company's strong margins and sound financials.
Disclaimer:
The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references.
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