Q4 Impact: Global Brokerage Growth up to 30% for IGL in the next 1 year

Morgan Stanley retained his overweight call on IGL with a target price of Rs 351, while Deutsche Bank maintained its purchase rating on IGL Post Q4 results.

Global brokerage firms such as Morgan Stanley, Nomura and Deutsche Bank retained their Q4 rating on Indraprastha Gas (IGL) and saw an increase of around 30 per cent from May 24 to 313 rupees.

Indraprastha Gas, which retails automobiles for CNG in the national capital and nearby cities, recorded a growth of 28% in its March quarter net profit on March 24.

In a statement, the company said in January-March net profit increased from Rs 175.33 crore to Rs 224.72 crore. Turnover increased to Rs 1,694 crore from Rs 1,347 crore last year.

During FY19, the total sales volume increased by 14 percent compared to the previous year and the CNG recordings recorded an increase of 13 percent in Volume and 15 percent increase in PNG volume.

The IGL Board recommends the last phase of 120% for the consideration of the members in its annual general meeting.

Morgan Stanley
Morgan Stanley maintained his overweight call on IGL with the target price of Q1 results of Rs 351. The reported Q4 earnings defeated Morgan Stanley's EBITDA estimate and consensus by 9 percent.

The main surprise in earnings was the increase in demand for gas. Earnings increased 29 percent and QiQ by 14 percent.

Nomura
Nomura maintained its purchase rating on IGL with a target price of 400 rupees. Q4 profit was inspired by a strong growth of 17 percent.

This stock was the main beneficiary of the judiciary's focus on pollution in government and Delhi NCR. The global investment bank is optimistic on increasing the double-digit volume continuation in IGL. It can surprise with a high volume increase for long periods.

Deutsche Bank
Deutsche Bank maintained its purchase rating and made its goal from 360 to 375 rupees.

It was said that the increase in the quantity of CNG in the last 28 quarters was the highest. Global investment bank has confirmed growth in long-term volumes. In FY2011-21, it predicts 16 percent CAGR and EPS is powered by 15 percent volume CAGR.

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