NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Indraprastha Gas Ltd. currently trades below mean -1SD one-year forward P/E valuation. Excluding Maharashtra Natural Gas Ltd., Central U.P. Gas Ltd., the stock is trading at 9x FY28E P/E, despite generating ~14- 15% RoE and delivering 6-8% volume growth.
Motilal Oswal believes the current valuation appears to underappreciate the earnings resilience and growth potential of the business.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The brokerage estimates Ebitda margin of Rs 5.5/Rs 6.2 per scm in FY27/28 and volumes to clock 7% CAGR over FY26-28.
Resultant EBITDA and PAT are estimated to clock a CAGR of 14% each over FY26-28.
Motilal Oswal value IGL at 13x Dec'27E SA P/E and add Rs 44/share as the value of joint ventures to arrive at a target price of Rs 195/share.
At a 2.6% FY27E dividend yield and 14% EPS growth over FY26-28, the brokerage believes the valuation is attractive. Reiterates Buy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
