Share of Indraprastha Gas Ltd is currently trading at around Rs.205/-Existing as well as Prospective Investors are asking for Indraprastha Gas Share Price Targets for 2025,2030,2035 & 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you about the Indraprastha Gas Share Price Targets for 2025,2030,2035 and 2040
Discussion & Analysis of Business & Financial performance with future business prospects of Indraprastha Gas Ltd:
Indraprastha Gas Limited (IGL), a leading player in India’s city gas distribution sector, has demonstrated a mixed financial performance in recent quarters, reflecting both growth opportunities and operational challenges
Recent Financial Performance
In the second quarter of the fiscal year 2024-25 (Q2 FY25), IGL reported its highest-ever quarterly turnover of ₹4,070 crore, marking a 7% increase year-on-year. This surge was primarily driven by a 6% quarter-on-quarter increase in sales volume, reaching 9.03 million standard cubic meters per day. The Compressed Natural Gas (CNG) segment experienced a 9% year-on-year growth, while Piped Natural Gas (PNG) sales saw a 12% increase, with notable growth across domestic, commercial, and industrial segments. However, despite the revenue growth, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined due to increased gas input costs, resulting in a net profit of ₹431 crore, a slight uptick from ₹401 crore in the previous quarter.
Moving into the third quarter of FY25 (Q3 FY25), IGL continued its growth trajectory with a 7% year-on-year increase in average sales volume, reaching 9.11 million standard cubic meters per day. The CNG segment grew by 6%, and the PNG segment achieved a 12% growth, with industrial PNG sales rising by 16%. Despite these positive volume metrics, the company faced profitability pressures, with EBITDA decreasing by 36% year-on-year to ₹363 crore, and profit after tax (PAT) declining to ₹285 crore from ₹392 crore in the same quarter of the previous year. These declines were attributed to higher gas input costs and challenges in gas sourcing due to reduced allocations of Administered Pricing Mechanism (APM) gas.
Future Business Prospects
IGL is proactively addressing the challenges posed by increased input costs and reduced APM gas allocations by exploring various strategies to sustain and enhance its growth: Diversification of Gas Sourcing: The company is actively seeking alternative gas sourcing options, including long-term contracts and market-driven Regasified Liquefied Natural Gas (RLNG), to mitigate the impact of reduced APM gas supplies. This approach aims to stabilize input costs and ensure a reliable gas supply for its expanding customer base.
- Infrastructure Expansion: IGL plans to invest approximately ₹1,700 crore in capital expenditures for the financial year, with about 45% to 55% allocated to the Delhi National Capital Region (NCR) and the remainder to other geographical areas. This investment includes infrastructure development and the expansion of CNG stations, aiming to enhance distribution efficiency and meet growing demand.
- LNG and CBG Initiatives: The company is expanding its Liquefied Natural Gas (LNG) infrastructure, with plans to commission three new LNG stations by the end of the financial year. Additionally, IGL is focusing on Compressed Biogas (CBG) projects to enhance volumes and profitability, aligning with sustainable energy initiatives
- Geographical Expansion: IGL is exploring strategic inorganic opportunities and focusing on new geographical areas to drive future growth. The company projects a 10-11% annual growth, adding 1 million standard cubic meters per day each year, driven by strong growth in new geographical areas and continued expansion in Delhi NCR and other regions.
- While IGL faces challenges such as increased input costs and regulatory pressures, its strategic initiatives in diversifying gas sourcing, expanding infrastructure, and exploring new markets position the company for sustained growth in the evolving energy sector.
Share Price Targets:
Indraprastha Gas Share Price Target 2025
Based on the above discussion and analysis, the share price of Indraprastha Gas Ltd is likely to touch the level of around Rs.225-250 in 2025
Indraprastha Gas Share Price Target 2030
Based on the above discussion and analysis, the share price of Indraprastha Gas Ltd is likely to touch the level of around Rs.400-450 in 2030
Indraprastha Gas Share Price Target 2035
Based on the above discussion and analysis, the share price of Indraprastha Gas Ltd is likely to touch the level of around Rs.800-850 in 2035
Indraprastha Gas Share Price Target 2040
Based on the above discussion and analysis, the share price of Indraprastha Gas Ltd is likely to touch the level of around Rs.1400-1500 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
Read Also:
How to make maximum profit with minimum investment from the Stock Market ? – MoneyInsight
Also Read :
How to make money from share market? (indiatimes.com)
Visit our Hindi Website regularly for more such Educational Research Articles in Hindi:
News4You – News & Views On Current Affairs
Visit our Website regularly for more such Educational Research Articles:
MoneyInsight – We Provide Insight to Your Money
