IGL spikes on price hike

Indraprastha Gas is up in the green today. The stock is up over 2% at Rs.267.35, with an intra day high at Rs.274.95.

The stock is up after the company announced a price hike two days ago. This price has gone up now to an all time high in Delhi and NCR with IGL increasing CNG and PNG prices by 8% in 3 months. The current CNG price in Delhi is Rs 45.60 per kg in Delhi and Rs 51.55 per kg in Noida, Greater Noida and Ghaziabad. Steep rupee depreciation has forced the company to hike the rates as it imports LNG. This price hike will help offset the effect of falling rupee but may not result in any major improvement in margin, unless the rupee continues to appreciate in a sustainable way.