Equirus Securities
Indraprastha Gas (Add)
CMP: ₹344.55
Target: ₹360
b) Post some softness in 3QFY19, PNG volume growth returned from early double-digits in the last two quarters to 20 per cent y-o-y in 4QFY19; this was led by a 30 per cent/13 per cent y-o-y growth in industrial/household activities and further aided by a 12.5 per cent y-o-y growth in trading volumes. We expect 12 per cent PNG volume CAGR over FY19-FY21E driven by strong growth in industrial volumes.
We expect EBITDA/EPS CAGR of 12 per cent/14 per cent over FY19-FY21E driven by a 12 per cent volume CAGR. Maintain ‘add’ with a DCF based September 2020 target price of ₹360 (March 2020 target price of ₹340 earlier), including ₹37/share for the subsidiary stake.