The Delhi government is planning to roll out the Electric Vehicle Policy 2.0 soon. The revised EV policy will aim to widen the adoption of electric vehicles across multiple segments including public transport, goods carriers, and passenger vehicles. We believe the implementation of such strict policy will be a challenging task. Even if it is implemented strictly, our analysis shows that the impact on IGL's earnings will be meagre.
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HDFC Securities Institutional Equities
We expect Indraprastha Gas Ltd.'s consolidated earnings per share to record 14.4% CAGR over FY25-27E while RoE should remain at 17% during this period. At the current market price, IGL is trading at 14.8x Jun-26E EPS, which we believe is contextually low.
The current market price factors in an Ebitda margin of Rs 5.9/scm over FY26-33E. We have tweaked our MNGL volume and Ebitda estimates upwards, leading to an increase of 10.8/10.7% in the FY26E/FY27E consolidated EPS estimates respectively.
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