BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Compressed natural gas and domestic piped natural gas volumes for listed city gas distributions (Indraprastha Gas Ltd., Mahanagar Gas Ltd., Gujarat Gas Ltd. and Adani Total Gas Ltd.) reported a 7% compound annual grwoth rate over the past four years, while gas production from nominated fields declined at 3% CAGR during the same period.
The supply-demand imbalance is likely to continue, thereby increasing the proportion of expensive non-administered price mechanism volumes in sourcing mix for CGDs. This should further lead to structural margin challenges going forward.
For Indraprastha Gas, we estimate that the 20% penetration of electric vehicles in sales of new CNG vehicles over the next three years would result in a decline in average CNG sales volume growth to 9% from 12% in our base case.
Prospects of long-term high volume growth remain even bleaker for the company.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
