 "Indraprastha Gas hits record high")
Indraprastha Gas (IGL) has moved higher to its record high of Rs 615, up 6% on the BSE, in an otherwise subdued market on the back of heavy volumes.
The trading volumes on the counter jumped an over four-fold with a combined 1.6 million shares already changed hands till 12:13 PM, against an average sub 5 lakh shares that were traded daily in past two weeks on the BSE and NSE.
The S&P BSE Sensex was down 0.16% at 26,354 points.
IGL is the sole supplier of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in the National Capital Region (NCR) of Delhi. The company principal activity is the retail gas distribution and supplying of CNG to automotive PNG to domestic and commercial sectors like hotels, hospitals, embassies, restaurants etc.
According to Religare Institutional Research, IGL has completed setting up 90 CNG stations across the NCR, as an effort to comply with the Supreme Court directive aimed at curbing air pollution. Thus, its CNG volume growth is likely to accelerate over the next few quarters. Higher volumes coupled with margin expansion from lower gas prices are likely to shore up earnings growth over FY17/FY18.
The brokerage house maintains ‘buy’ rating on the stock with a target price of Rs 710.
The trading volumes on the counter jumped an over four-fold with a combined 1.6 million shares already changed hands till 12:13 PM, against an average sub 5 lakh shares that were traded daily in past two weeks on the BSE and NSE.
The S&P BSE Sensex was down 0.16% at 26,354 points.
IGL is the sole supplier of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in the National Capital Region (NCR) of Delhi. The company principal activity is the retail gas distribution and supplying of CNG to automotive PNG to domestic and commercial sectors like hotels, hospitals, embassies, restaurants etc.
According to Religare Institutional Research, IGL has completed setting up 90 CNG stations across the NCR, as an effort to comply with the Supreme Court directive aimed at curbing air pollution. Thus, its CNG volume growth is likely to accelerate over the next few quarters. Higher volumes coupled with margin expansion from lower gas prices are likely to shore up earnings growth over FY17/FY18.
The brokerage house maintains ‘buy’ rating on the stock with a target price of Rs 710.