Shares of Indraprastha Gas (IGL) today jumped 7% to the day’s high of Rs 468.20 on BSE; Know latest target price
IGL Share Price Today: Shares of Indraprastha Gas (IGL) today jumped 7 per cent to the day’s high of Rs 468.20 on BSE after the company reported a 16 per cent year-on-year (YoY) increase in its fourth-quarter profit to Rs 383 crore.
Read More: Indegene IPO Day 3: Subscription At 9.54x, GMP Stable
However net profit fell nearly nine percent from Rs 475.45 crore in the previous quarter ending December 31.
Revenue from operations during the quarter stood at Rs 3,964.42 crore, slightly lower than the Rs 4,056.44 crore recorded in the same period last year.
The fourth-quarter earnings before interest, tax, depreciation, and amortisation (EBITDA) totaled Rs 682.58 crore, marking a slight decline of around 3 percent from the previous quarter’s figure of Rs 702.65 crore.
In the quarter ending March 31, the company’s total volume reached 8.73 mms cmd (million metric standard cubic metres per day), marking a six percent increase compared to the previous year.
Read More: Canara Bank shares Q4 results, declares Rs 16.90 dividend; Jhunjhunwala stock up 2%
During Q4, CNG volumes grew by five percent year-on-year, reaching 580 million scm, while both PNG (domestic) and PNG (industrial/commercial) saw significant increases of 17 per cent and 12 per cent in volumes, respectively, compared to the same period last year.
Furthermore, the company’s board proposed a dividend of Rs 5 per share for the financial year 2023-24.
What Should Investors Do?
According to analysts at Motilal Oswal, the sales and PAT of the company mostly fell in line with their expectations. However, the company missed estimates on Ebitda due to lower-than-expected margin.
The brokerage has a ‘sell’ view on the stock, however, the target price would be determined after the analyst meeting.
Read More: Novelis IPO: Over Rs 8k crore! What’s KM Birla’s Hindalco mulling – Updated details
On valuation grounds and due to IGL’s decent pricing power and steady volume growth story based on its existing lucrative NCR market and expansion into new, lucrative nearby cities and intercity traffic, JM Financial maintained a ‘buy’ rating on the stock, keeping the target price unchanged at Rs 470.
DISCLAIMER:Disclaimer: The views and investment tips by experts in this Officenewz.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
