IGL jumps up 7%

With an almost 5x surge in volumes, Indraprastha Gas Ltd or IGL is the top gainer on the BSE since the morning today. Opening over 1.5% lower at Rs.430.50, the stock suddenly came into the limelight and shot up 7% to an intraday high at Rs.468.20 and is currently trading around the same levels.

The company announced its earnings yesterday and they were not exactly enthusing. Its revenue rose 1.3% (YoY) to Rs.3597 crore; this was only parameter which rose, rest all were down. EBITDA came in 6% lower at Rs.523 crore while margins slipped from 15.7% to 14.5%. PAT for the quarter came in at Rs.383 crore, down 2.4%.

Despite this, the stock is up and the top gainer today because fund house, Jefferies tracks this stock and they have put out a hike in its target price post these numbers, indicating better outlook ahead.

Justifying its stance, Jefferies said that though Q4 EBITDA was way off the estimate, it was on account of higher than anticipated gas costs, despite reduction in spot LNG and HPHT gas price. Volumes were in-line but below management guidance. It expects to see the full impact of Rs.2.5/kg CNG price cut from Q1FY25 onwards but does see near-term pressure on profitability.