Motilal Oswal - Indraprastha Gas Limited (IGL) MOSL: INDRAPRASTHA GAS (Neutral)-Strong volume growth continues; beat on EBITDA/scm

Report

Motilal Oswal

Swarnendu Bhushan

EUR 120.00 For Business Accounts Only

MOSL: INDRAPRASTHA GAS (Neutral)-Strong volume growth continues; beat on EBITDA/scm

INDRAPRASTHA GAS: Strong volume growth continues; beat on EBITDA/scm

(IGL IN, Mkt Cap USD3.9b, CMP INR393, TP INR355, 10% Downside, Neutral)

High volume growth, combined with an expansion in EBITDA/scm, resulted in an EBITDA jump of 27% YoY to INR3.9b (our estimate: INR3.7b) for 2QFY20. PBT stood at INR3.7b with a DTL reversal of INR81.6m. PAT was at INR3.8b (v/s INR1.9b in 2QFY19).

The company has recognized provision for income tax on the revised rates, resulting in a reduction in current tax expense to the extent of INR614m.
For 1HFY20, EBITDA stood at INR7.3b (+20% YoY) with EBITDA/scm at INR6.2 (v/s INR5.8 in 1HFY19). PBT was up 20% YoY at INR6.8b, while PAT increased 34% YoY to INR4.9b due to the adoption of the lower tax rate.
EBITDA/scm for the quarter stood at INR6.5 (v/s INR5.7 in 2QFY19), supported by the CNG price hike of ~1.4-1.5/kg taken by IGL during the quarter amid an increase in the pipeline tariff. Also, spot LNG prices averaged lower YoY/QoQ at USD5.1/mmbtu (v/s USD10.4 in 2QFY19 and USD5.4 in 1QFY20). EBITDA/scm is the highest since 1QFY17.

08/11/2019 10 EN

Underlying

Indraprastha Gas Limited

Indraprastha Gas Limited (IGL) is an India-based city gas distribution company. The Company's business consists of sale of natural gas. The Company is focused on industrial and commercial business. The Company supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to the domestic, industrial and commercial sectors in Delhi and the National Capital Region (NCR). The Company offers PNG, which includes methane-CH4, as well as other hydrocarbons. The Company offers CNG, a gaseous fuel that includes a mixture of hydrocarbons, primarily methane. The Company has approximately 340 CNG stations spread all around the National Capital Territory of Delhi and in NCR. The Company provides PNG connections to over 6.36 lakhs domestic households, and approximately 2,630 commercial and industrial customers.

See profile

INE203G01027 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Swarnendu Bhushan

Other Reports on these Companies

TheScreener

INDRAPRASTHA GAS increases its risk exposure and slightly lowers to Neutral

INDRAPRASTHA GAS (IN), a company active in the Gas Distribution industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date November 26, 2021, the closing price was INR 486.40 and its expected value was estimated at INR 501.75.

Free Trial

November 27, 2021 November 27, 2021 1 EN

Motilal Oswal

MOSL: INDRAPRASTHA GAS (Neutral)-Rewarding 2QFY22, although risk-reward unfavorable

INDRAPRASTHA GAS: Rewarding 2QFY22, although risk-reward unfavorable (IGL IN, Mkt Cap USD4.7b, CMP INR494, TP INR520, 5% Upside, Neutral) Indraprastha Gas (IGL) reported EBITDA ahead of our estimates. This was led by better-than-estimated volumes (CNG volumes now 8% above pre-COVID peak) and higher-than-estimated EBITDA/scm (INR8, primarily supported by a CNG price hike of INR1.8/kg during the quarter). With an overwhelming quarterly performance, the challenges ahead for IGL are overwhelming as well: The recent excise duty cut on petrol and diesel has reduced savings of CNG to liq...

EUR 120.00

November 10, 2021 November 10, 2021 11 EN

Motilal Oswal

MOSL: INDRAPRASTHA GAS (Neutral)-In-line results; real challenge from APM and EVs ahead

INDRAPRASTHA GAS: In-line results; real challenge from APM and EVs ahead (IGL IN, Mkt Cap USD5b, CMP INR535, TP INR510, 5% Downside, Neutral) Indraprastha Gas (IGL) reported EBITDA in line with estimate, with volumes marginally below estimate (-5% est., at 5.32mmscmd). On the other hand, EBITDA/scm was marginally better than estimated (+5% est., at INR7.9). IGL reported flat EBITDA margins QoQ, while peers MAHGL and GUJGA reported margin expansion QoQ on account of a higher mix of spot LNG. On the other hand, a much lower spot LNG mix resulted in flat QoQ EBITDA margins for IGL. We rei...

EUR 120.00

August 14, 2021 August 14, 2021 8 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: INDRAPRASTHA GAS (Neutral)-Strong volume growth continues; beat on EBITDA/scm

INDRAPRASTHA GAS increases its risk exposure and slightly lowers to Neutral

MOSL: INDRAPRASTHA GAS (Neutral)-Rewarding 2QFY22, although risk-reward unfavorable

MOSL: INDRAPRASTHA GAS (Neutral)-In-line results; real challenge from APM and EVs ahead

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe