Indraprastha gas share price

Indraprastha Gas down 10% on EV policy; MFs, insurers lost Rs 681 crore in value. Shares of Indraprastha Gas fell more than 10 per cent on October 20 after the Delhi government approved the electric vehicle policy for cab aggregators and delivery services. This resulted in a loss of over Rs 681 crore in value to mutual funds and insurance companies holding the stock.Indraprastha gas share price
According to BSE shareholding pattern, around 25 mutual funds collectively held around 67.74 million shares or 9.68 per cent stake in IGL as of the September quarter. These MFs include Kotak Fexicap Fund Growth, Mirae Asset Emerging Bluechip Fund, PGIM India Midcap Opportunities, Nippon India Growth Fund, HSBC Midc
ap Fund, DSP Equity Opportunities Fund and HDFC Large and Midcap Fund.
Around 20 insurance companies collectively hold 77.30 million shares, representing 11.04 per cent stake in the firm. Life Insurance Corp Ltd, India’s largest insurer, suffered a loss of over Rs 200 crore due to the fall in the stock. It holds about 45.41 million shares, which is equivalent to 6.49 percent stake in the company.Indraprastha gas share price
Jefferies India has downgraded IGL to ‘Hold’ from ‘Buy’ and cut the target price by 3 per cent to Rs 465 on an expected 30 percent decline in volumes by FY2025, primarily in the NCR. 88 percent of IGL’s volume is impacted by Delhi-NCR. Jefferies also cut FY25/26 EPS by 7-9 per cent and adjusted valuation multiples due to increased EV-related risks.

IGL MGL shares rise 11% as Delhi government approves EV policy

Shares of city gas distribution (CGD) companies Indraprastha Gas (IGL) and Mahanagar Gas (MGL) surged up to 11 per cent on Friday after the Delhi government approved the electric vehicle
IGL declined 10.7 per cent to ₹408.25 in intra-day deals. On the other hand, MGL fell 8 per cent to its day’s low of ₹1,032.75.
Sentiment also weakened after global brokerage house Jefferies downgraded IGL and cut its target price.
It is awaiting the approval of the Lieutenant Governor. It plans to achieve 5 per cent growth in EVs within the fleet operated by companies like Uber and Ola within the next six months. The policy requires a gradual shift towards electric vehicles, with 50 per cent of new purchases to be electric within three years and 100 per cent to be electric within five years from the notification date. By April 1, 2030, all aggregators must have a fully electric fleet.
Since 75 percent of IGL’s sales come from distribution of CNG, this new policy is likely to have a cascading impact on the company.
Jefferies has downgraded the stock to ‘Hold’ and reduced its target price to ₹465, suggesting an upside of 14 per cent. This could impact 30 per cent of IGL’s total sales volume by fiscal 2025, Jefferies said. It has also cut FY25/26 EPS by 7/9 per cent and said lower valuation multiple will be a factor in increasing EV risk.
ber has already ordered 25,000 EVs from Tata Motors by early 2023. Additionally, IGL About 15 per cent of the volume comes from DTC buses and three-wheelers, and they also face EV-related risks due to the purchase of 5,500 EV buses and favorable economics for three-wheeler EVs. The company’s expansion into new areas And potential acquisitions provide growth opportunities, but these may not fully offset the slowdown in the NCR region, it said.
The brokerage cut volume growth estimates for FY24-26 to 3 per cent/6 per cent/6 per cent. Its estimate is now 8 per cent/15 per cent lower than consensus on FY25/26 PAT.
In a bearish scenario, Jefferies expects a target price of ₹380, indicating a downside of 17 per cent. In this, it is assumed that electric vehicle adoption will be successful by 2024-25, thereby reducing CNG volume growth from FY24E. Other potential factors include removal of cost advantages for domestic CNG gas and competition from third-party marketers in Delhi/NCR, impacting profit margins due to sales of gas in a regulated environment, the report said.

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