IGL share price: Add Indraprastha Gas, target price Rs 565: Centrum Broking

Time period given by analyst is one year when Indraprastha Gas price can reach defined target.

Indraprastha Gas Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 37369.54 Crore) operating in Gas & Petroleum sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1738.30 Crore, up 18.09 % from last quarter Total Income of Rs 1472.07 Crore and up 9.76 % from last year same quarter Total Income of Rs 1583.79 Crore. Company reported net profit after tax of Rs 331.00 Crore in latest quarter.

Investment Rationale
The brokerage believes that the valuations of the stock reflects fairly the V-shaped recovery in volumes, peer-leading track record, steady margin improvement and healthy balance sheet for

. It has cut EPS estimates by 7% for FY22E EPS and marginally for FY23E, and have reduced target price to Rs565/sh. Current valuations of 23.5x FY23E EPS (standalone) remain at a premium to peers, which it believes adequately captures the risk-reward.

Promoter/FII Holdings
Promoters held 45 per cent stake in the company as of March 31, 2021, while FIIs held 23.8 per cent, DIIs 15.8 per cent and public and others 15.4 per cent.