Shares of Indraprastha Gas (IGL) rallied 8 per cent, hitting 52-week high, in intra-day trade on Monday after the oil market company reported higher-than-expected earnings in March quarter.
IGL, which retails CNG to automobiles in the national capital and adjoining cities, has reported a 28 per cent growth in its net profit at Rs 224.72 in March quarter as compared to Rs 175.33 crore in the year-ago period, driven by higher sales. Revenue increased to Rs 1,694 crore in March quarter from Rs 1,347 crore in the last year.
Following the Q4 earnings report, the global brokerage agencies such as CLSA, Morgan Stanley, Nomura and Deutsche Bank maintain their buy rating on IGL stock. CLSA has maintained buy rating with a target price of Rs 390 per share, while Morgan Stanley has maintained an overweight call with a target price of Rs 351 per share. While Nomura affirmed buy rating on IGL with a target price of Rs 400, Deutsche Bank maintained its buy rating and also raised its target price to Rs 375 per share.
Boosted by Q4 and brokerage ratings, IGL share price gained as much as 8.01 per cent and touched 52-week high of Rs 339 against previous close level of Rs 313.85 on the Bombay Stock Exchange. The stock was currently trading at Rs 333.55, up 6.28 per cent.
On the National Stock Exchange, IGL shares were up 6.65 per cent at Rs 334.95 apiece. The scrip opened higher at Rs 322.95 against previous close of Rs 314.05 and touched 52-week high of Rs 339.30 in early trade.
For the financial year 2018-19, profit after tax stood at Rs 786 crore against Rs 671 crores in FY18, reporting a year-on-year increase of 17 per cent, on account of higher sales volume and higher other income.
Total gross sales value during FY19 was Rs 6,337 crore against Rs 4,994 crore achieved during the last year. Product wise, CNG recorded sales turnover of Rs 4,761 crore, registering a growth of 24 per cent and PNG recorded sales turnover of Rs 1,576 crore posting a growth of 35 per cent over previous year.
IGL board recommended a final dividend of 120 per cent, subjected to requisite approval of its members in the Annual General Meeting.
Edited by Chitranjan Kumar