Tag: Indraprastha Gas

If you look at numbers for Indraprastha Gas (IGL), Mahanagar Gas (MGL), you are probably looking at volume growth in excess of 10-12% over the next few quarters and years.The addition of new cities is going to abet their expansion as well, said Mayuresh Joshi, Angel Broking.

“Individually, MGL for example are adding on 20 CNG stations; and when you are looking at IGL with additions that they have done and the expectations of volumes to be around 6-6.25 mmscmd along with gross margins around  $32.14 per SCM, that is going to abet their earnings growth substantially,” Joshi added.

Speaking about the gas stocks, he said, “Gas distribution story still remains intact over the longer period of time. The volumes have remained extremely stable for these gas distribution companies and the gross margins have largely been stable as well. So if you look at the price increases, specifically in terms of domestic gas pricing and the APM pricing, and you compare that with the cost of alternate fuels like petrol and diesel actually moving up substantially higher, though you have seen price cuts over the past 10 days.”

I think the dynamics in terms of cleaner fuel and the consumption of both CNG and PNG on the rise is going to abet their volume growth substantially higher, he added.

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