Tag: Indraprastha Gas

ONGC up 2%, Indraprastha Gas jumps nearly 5%; here’s why oil and gas shares are surging

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of oil and gas majors Oil and Natural Gas Corporation (ONGC) and Indraprastha Gas (IGL) partially recovered on Friday from the losses in the past few sessions on the back of the Russia-Ukraine geopolitical crisis. Shares of both the companies were in the green following upbeat brokerage commentary and amid an overall positive sentiment in the market.

ONGC shares jumped to an intraday high of Rs 160.40, up 2.4 percent from its close, on BSE. The stock was trading 1.95 percent higher at Rs 159.70 at 12:30 pm.

Global brokerage Morgan Stanely has maintained its overweight call on ONGC. It sees a 65 percent upside in the oil company’s stock as it has set a target price of Rs 263 per share, which was quoted at Rs 159.05 on BSE at the time of writing.

The brokerage remains positive as it expects domestic gas ASPs to double by April 2022. Every $1/Metric Million British Thermal Unit (mmBtu) change in gas prices affects ONGC’s earnings by 5-8 percent, the brokerage said, adding that gas accounts for 50 percent of the firm’s domestic hydrocarbon production

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With the Russia-Ukraine crisis escalating and oil surging past $100 a barrel, ONGC shares erased 3.77 percent of investors’ wealth in the past five days as against benchmark Sensex which fell 2.72 percent during the period.

IGL shares surged 4.9 percent to Rs 349.45 in intraday trade. At 12:30, IGL stock was trading 3.56 percent higher at Rs 345 on BSE.

Jefferies has a buy rating on the stock with a target price of Rs 620 per share, which means the brokerage firm expects a 44 percent upside in the stock.

After a 38 percent underperformance since September 2021, the company is now seeing interest, Jefferies said. It added that apart from ECs, there has been a sharp rise in gas costs, which is a key concern.

The brokerage remains positive on the back of strong pricing power, staggering nature of price hikes, higher crude, and headroom in CNG economics, it said.

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Oil & gas, energy stocks plunge over 10% as Russia attacks Ukraine, crude oil soars past $100

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of all oil and gas and energy companies were in the red on Thursday amid a global sell-off triggered by Russia’s invasion of Ukraine. Following the development of the war, global benchmark Brent crude rose above $104 a barrel, its highest level since August 2014.

The sectoral gauge Nifty Oil and Gas slipped more than 4.5 percent in intraday trade pulling the benchmarks indices down. Sensex nosedived 2,700 points at the close and Nifty50 cracked below 16,300 after Russian President Vladimir Putin announced a military operation in Ukraine.

The stocks in the Nifty Oil and Gas pack plunged 2 to 10 percent. A total of 7,82,13,715 shares of Nifty Metal constituents worth Rs 3.41 lakh changed hands, NSE data showed.

Shares of state-run GAIL (India) dropped nearly 7 percent at day’s low and ended the session 6.37 percent lower at 129.45 on NSE.

Mangalore Refinery and Petrochemicals Limited (MRPL), the worst performer at the time of writing, decline more than 11 percent to intraday trade. The stock settled at Rs 37.45, down 10.30 percent from its previous close, at 3:10 pm.

Indraprastha Gas shares corrected more than 8 percent during the day and recovered marginally in afternoon deals to finish at Rs 333.05, 7.77 percent lower from its previous close. Shares of Mahanagar Gas Limited (MGL) too fell almost 9 percent in intraday trade. The stock was down 8.53 percent at Rs 684 at the close.

Oil and Natural Gas Corporation Limited (ONGC) shares plunged almost 3 percent during the session and ended 2.77 percent lower at Rs 156.30 on NSE.

According to Norbert Rücker, Head of Economics and Next Generation Research, Julius Baer, the Ukraine crisis has brought the economy and markets to the brink of a worst-case scenario, where the crisis begins to turn into an economic shock, not only a sentiment shock.

“Center stage of such an outcome are energy markets, where oil and natural gas prices have become the crisis’ fear barometer. Any disruption of flows between Russia and Europe, due to damage or sanctions, would drastically add to the already present supply scarcity,” he told CNBCTV18.com.

Nirav Karkera, Head of Research, Fisdom, said the ongoing geopolitical upheaval coincides with the F&O expiry, which has only added to the frenzy on D-Street. He expressed concern over India VIX that went up 30.31 percent today to 31.98, floating at levels unseen in almost 20 months, which signals heightened volatility.

The next leg of investors’ reactions will be decided based on how does the US and NATO decide to react, he said, adding that while sanctions are going to be bad, military intervention would be worse for global economics.

“There’s a slim chance that the next episode would be of de-escalation and diffusion of the tension basis amicable diplomacy. The bad news is that things could probably get worse before it gets better, but the good news is that now would be a good time to revisit high-conviction ideas and also build positions if the fundamentals seem relatively insulated against the crisis,” he told CNBCTV18.com.

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Oil and gas shares mixed: BPCL sinks 3.5%, Indraprastha Gas down 4%, ONGC top gainer amid supply disruption concerns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Bharat Petroleum, Indraprastha Gas, GAIL (India), Indian Oil Corporation and most other oil and gas companies traded lower on Tuesday even as Oil and Natural Gas Corporation (ONGC) was the top gainer.

The sectoral gauge Nifty Oil & Gas declined more than 2 percent in intraday trade amid an overall negative trend in the market on the back of escalating geopolitical tensions between Russia and Ukraine that have led crude oil prices to a 7-year-high.

At the time of writing, 13 out of 15 stocks in the Nifty Oil & Gas pack were in the red while Oil India Limited (OIL) and ONGC were in the green, up between 0.04 to 1.9 percent in intraday trade.

Oil prices jumped more than $2 today on supply disruption worries after Moscow ordered troops into two breakaway regions in eastern Ukraine.

Commonwealth Bank analyst Vivek Dhar, cited by news agency Reuters, said it was unlikely US and European governments would impose oil or gas sanctions on Russia if it invaded Ukraine further as that would inflict pain on themselves.

However, Russia, the second-largest oil producer, and exporter in the world, itself could hold back oil and gas supplies if it sought to retaliate against any other sanctions imposed by the West, Dhar added.

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Bharat Petroleum Corporation Limited (BPCL), the top loser in the oil and gas pack at the time of writing, slipped 3.5 percent from its previous close to an intraday low of Rs 355.80. In the past five days, BPCL stock has erased almost 5 percent of investors’ wealth as against the benchmark index Nifty which has given up 2.5 percent during the period.

Indraprastha Gas Limited (IGL) stock was down 4.4 percent in intraday trade to Rs 354.10. The stock, which has given up more than 6 percent in the past five days, was trading 2.47 percent lower at Rs 361.40 on the National Stock Exchange at the time of writing.

Shares of state-run GAIL (India) too witnessed a sell-off of 3 percent in intraday trade. The stock was trading 1.76 percent lower at Rs 133.90 on NSE at 12:50 pm. It has corrected more than 4 percent in the past five days when the Russia-Ukraine crisis took centre stage.

Indian Oil Corporation stock slipped 2 percent to an intraday low of Rs 116.50. It was trading 1.72 percent lower at Rs 117.15 at the time of writing. It has erased 3.5 percent of investors’ wealth in the last five trading sessions.

However, ONGC shares jumped 1.9 percent today an intraday high of Rs 166.50. The stock limited the upside in afternoon deals and was trading only 0.18 percent higher at Rs 163.70on NSE at the time of writing. In the 5-day period, the stock has declined almost a percent.

Probal Sen, an analyst at ICICI Securities, told CNBC-TV18 that ONGC will benefit when if crude and gas prices continue to spike.

“Given the kind of crisis we are facing, it is very difficult to put a number on how high crude can go. Also, if you add the fact that domestic gas prices are also likely to rise very sharply from April, then to that extent ONGC will benefit. However, we do not have official coverage as of now but directionally ONGC will be a big beneficiary if crude and gas prices continue to spike,” he said.

According to Jahangir Aziz, Head of Emerging Markets Economics Research & Commodities, JPMorgan said, in the absence of any untoward geopolitical events, the demand and supply dynamics suggest oil should average on $90 a barrel.

“However, in the event, if we do get a geopolitical shock, then oil will easily go above $100 and we are looking at even if there isn’t a full-fledged invasion like situation,” he told CNBC-TV18.

Independent energy and carbon market strategist Miswin Mahesh is of the view that going forward demand is likely to be impacted not just by the oil price but general inflation and rate rising environment etc.

“Overall, I see the market balancing at USD 85 per barrel level even though we see geopolitical premium and option market-linked flow activity that we think is pushing oil towards USD 100 per barrel,” he said.

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Indraprastha Gas stock hits 52-week-low post Q3 results; should you buy, sell or hold IGL shares?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The shares of Indraprastha Gas Limited (IGL) declined more than 3 percent in intraday trade on Wednesday, a day after the company reported its earnings for the quarter ended December 31, 2021.

IGL shares slipped 3.2 percent from their previous close to a 52-week low of Rs 379 on the BSE in intraday trade. However, the stock had started the session on a positive note and even surged to an intraday high of Rs 405.90.

The downtrend in the stock comes after IGL posted a net profit of Rs 308.5 crore for the December quarter, down 22 percent from Rs 400.5 in the corresponding quarter a year ago. The firm’s revenue, however, increased to Rs 2,438.5 crore, up from Rs 2,016 crore in the year-ago period.

IGL supplies compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to the domestic industrial and commercial sectors.

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Global brokerage Jefferies has given a ‘buy’ rating to the stock and has cut the target price to Rs 620 per share, which was quoted at Rs 384.80 on BSE at the time of writing. This means the brokerage sees a 61 percent upside in the stock as it said it was a soft quarter for the company but ahead of expectations. Jefferies finds IGL’scurrent valuations attractive.

CLSA has given an outperform call on the stock and lowered the target price to Rs 450 from Rs 540 per share earlier. This implies, it still expects an upside of 16 percent in IGL shares.

According to the brokerage, lower Opex and higher volumes drove the 12 percent profit beat. It added that a 4 percent volume beat led by record-high CNG Volume. It said the possible trebling of domestic gas prices continues to be a cause of concern.

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Goldman Sachs has a ‘sell’ call on the IGL stock. It has also cut the target price to as low as Rs 380 per share. The input cost pressure shall persist, the brokerage said. The brokerage also lowered its FY23/24 EBITDA projection to reflect the higher gas costs. It also pointed to the downside risk if the draft EV policy for Delhi cab aggregators gets implemented.

At 1 pm, IGL shares were trading 1.24 percent lower at Rs 386.75 on BSE. The stock was down 1.45 percent at Rs 386.40 on NSE.

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Indraprastha Gas Q2: Company ties up with Tata, Mahindra and Mahindra to set up EV charging stations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indraprastha Gas (IGL) has tied up with a few companies to set up electric vehicle (EV) charging stations, AK Jana, Managing Director of the company told CNBC-TV18.

The firm that retails compressed natural gas (CNG) in the national capital and adjoining cities, on November 9, reported a 30 percent jump in second-quarter net profit on the back of higher sales volumes. Net profit of Rs 400.54 crore in July-September 2021-22 is compared with Rs 307.94 crore net earnings during the same period of the previous year.

“We have set up 2 charging stations. One is from Tata and the other is from Mahindra, they are operating. We have tied up for kinetic energy for setting up battery swapping for two-wheelers and three-wheelers and I am expecting that by end of this year we will be operating a few stations. Our target is to grow 100 stations for setting up battery swapping facility,” Jana said.

Also Read: IGL Q2 results: Profit jumps 30% to Rs 400 crore

On CNG stations, he explained, “We are operating the highest number of CNG stations in the country. Every year, so far, we were adding around 50-60 CNG stations. This year we are going to add 120 CNG stations and we are targeting to add 150-200 every year.”

Watch the video for the complete management interview.

(With inputs from PTI)

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IGL Q2 results: Profit jumps 30% to Rs 400 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indraprastha Gas Ltd, the firm that retails CNG in the national capital and adjoining cities, on Tuesday reported 30 percent jump in its second-quarter net profit on the back of higher sales volumes. Net profit of Rs 400.54 crore in July-September 2021-22 is compared with Rs 307.94 crore net earning in the same period a year back, the company said in a statement.

Turnover soared 40 percent to Rs 2,005.07 crore in the second quarter of the current fiscal year (2021-22). IGL said it registered an average daily sale of 7.24 million standard cubic meters in the quarter as compared to 5.50 million standard cubic meters per day sales in the year-ago period, showing a growth of 32 percent.

While the CNG segment registered a sales volume growth of 36 percent, piped natural gas supplies to household kitchens and industries grew 22 percent during the quarter. IGL is the largest CNG distribution company in the country, operating city gas distribution (CGD) networks across 27 districts in 10 geographical areas spread across Delhi, Uttar Pradesh, Haryana and Rajasthan.

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The financial results showed “a strong resurgence after restrictions due to the second wave of the pandemic,” the statement said. “Both physical and financial performance of the company during the second quarter reflects a strong recovery in 2021-22 after lockdown hit the first quarter due to the second wave of the pandemic.” All the geographical areas where IGL is operating have started generating revenue, the company said adding sales have picked up considerably across all geographies and have shown remarkable growth above pre-lockdown levels.

“They are expected to grow further as the educational institutions open in the coming days,” it said referring to CNG-run buses that ply students to educational institutions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow