Q4 impact: Global brokerages see up to 30% upside for IGL in next 1 year

Global brokerage firms such as Morgan Stanley, Nomura and Deutsche Bank maintain their buy rating on Indraprastha Gas (IGL) post Q4 results and see upside of up to 30 percent from May 24 close of Rs 313.

Indraprastha Gas, which retails CNG to automobiles in the national capital and adjoining cities, reported on May 24 a 28 percent rise in its March quarter net profit on the back of higher sales.

The net profit in January-March rose to Rs 224.72 crore from Rs 175.33 crore in the year-ago period, the company said in a statement. Turnover increased to Rs 1,694 crore from Rs 1,347 crore last year.

During FY19, total sales volume grew 14 percent over the previous year with CNG recording 13 percent growth in volumes and PNG recording volume growth of 15 percent.

The average daily gas sale during the year was up to 5.91 million standard cubic metres per day (mscmd) from 5.18 mscmd in the previous year.

IGL board recommended a final dividend of 120 percent for consideration of the members in its Annual General Meeting.

Here’s what global brokerage firms recommended post March quarter results:

Morgan Stanley: Overweight | Target: Rs 351

Morgan Stanley maintained its overweight call on IGL with a target price of Rs 351 post Q4 results. The reported Q4 earnings beat Morgan Stanley’s EBITDA estimate and consensus by 9 percent.

The key surprise in the earnings was gas demand growth. The earnings grew 29 percent YoY and 14 percent QoQ.

Nomura: Buy| Target: Rs 400

Nomura maintained its buy rating on IGL with a target price of Rs 400. The Q4 profit was driven by a solid 17 percent volume growth.

The stock was the key beneficiary of the government and judiciary’s focus on pollution in Delhi NCR. The global investment bank is optimistic on sustained double-digit volume growth in IGL. It could also surprise with higher volume growth for long term.

Deutsche Bank: Buy| Target raised to Rs 375 from Rs 360 earlier

Deutsche Bank maintained its buy rating and raised its target to Rs 375 from Rs 360 earlier.

The CNG volume growth was the highest in the last 28 quarters, it said. The global investment bank has factored in a higher long-term volume growth. It forecast 16 percent CAGR in FY19-21 EPS driven by 15 percent volume CAGR.

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Stocks in the news: Infosys, HEG, Lumax Auto, Karnataka Bank, Kamdhenu, Mastek, IGL

Here are stocks that are in the news today:

IPO: Metropolis Healthcare opens for subscription on April 3. It is an offer for sale by promoters, which will close on April 5. The price band for the IPO has been fixed in the range of Rs 877-880 per equity share.

Marico: Company sees improved operating margin in Q4 on easing costs, and sees stable demand in Q4 and healthy growth in offtake.

Indraprastha Gas gets authorization for development of CGD network

Infosys: Subsidiary gets order from Kuwait’s Ahli United Bank for automation services.

Surana Telecom and Power: Company divested the 100 percent of equity stake held in Globecom Infotech Private Limited, wholly owned subsidiary.

DB Realty: In respect of creation of pledge on 77.5 lakh equity shares of DB Realty which were pledged by one of the promoters with Anand Rathi Global Financial Ltd. (lender) in connection with financial facility of Rs 6.00 crore given by the said lender to LLP.

SREI Infra to raise up to Rs 1,500 crore via issue of NCDs

TCS BaNCS for Core Banking has been successfully deployed at Harbin Bank, a full-service commercial bank in China

Wipro completes divestment of Wipro's Workday and Cornerstone Ondemand business

Board to consider Q4 results on April15-16 and recommendation of final dividend

HUDCO achieved loan sanctions of Rs 34,453.8 crore and loan releases of Rs 31,008.6 crore for the financial year 2018-19.

Biocon to sell and transfer drug substance business for Rs 33.3 crore

Mahindra Lifespaces' CFO Jayant Manmadkar resigns

Rushil Decor - GPCB allow comapny to operate Laminate sheet manufacturing unit at Gandhinagar upto July 01, 2019 as per conditions stipulated therein

Forbes & Company: Company handed over 50 percent of the business undertaking in project Vicinia to Paikar Real Estates Private Limited towards completion of the transaction.

Mastek: Company appointed Dennis Badman as chief business officer of Mastek Group.

Jet Airways: Company makes new roster for Boeing 737 pilots from April 11-26 - CNBC-TV18 Sources.

Lumax Auto Technologies closed its PCB manufacturing unit in Haryana from April 1

HEG board approved proposal to increase the stake of HEG in Bhilwara Energy from 29.48% to 49%

Karnataka Bank: Bank ties up with Bharti Axa Life Insurance company for life insurance business.

Magadh Sugar & Energy: CARE revised company's rating on long term bank facilities to BBB+:Stable, from A-:Negative.

Geetanjali Credit and Capital: Paresh G Patel, Managing Director of the company resigned.

Goa Carbon: Dara P Mehta resigned as Non- Executive Independent Director of the company.

Arvind Fashion's CFO Kannan Soundararajan resigns w.e.f. April 2

Virtual Global Education: Kamal Poddar Kishor has resigned from the post of the Chief Financial Officer of the company.

Kamdhenu: Company installed all requisite machinery for increase of capacity of its steel plant at Bhiwadi, Rajasthan from 72,000 MT to 1,56,000 MT per annum.

JK Tyre - India Ratings revises long term rating revised from IND A+ to IND A

Mcleod Russel - ICRA revised long term rating from ICRA AA- to ICRA A

Essel Propack received an amount of Rs 30.7 crore towards repayment of outstanding dues of Inter corporate deposit.

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Source: Moneycontrol