275% Dividend By Oil & Gas Company: November 12 Record Date; Buy Energy Stock?

 Headquartered primarily in Delhi NCR, Indraprastha Gas Limited (IGL) is an Indian natural gas distribution company that provides natural gas for cooking and automobile fuel. One of India's top suppliers of clean energy solutions is IGL. IGL is prepared to serve as your go-to source for energy solutions for business, industry, and transportation. Indraprastha Gas Limited (IGL), which was founded in 1998, distributes city gas in Delhi, the National Capital Territory. Indraprastha Gas Limited (IGL) is a city gas distribution (CGD) business situated in India.

Indraprastha Gas Dividend

"We wish to inform that Board of Directors in its meeting held today, has declared interim dividend @ 275% i.e. Rs.5.50 per share (Face value of Rs.2/- each) on the equity shares of the Company for the Financial Year 2024-25. The record date for ascertainment of shareholders entitled to receive the aforesaid interim dividend shall be November 12, 2024 (Tuesday)," said IGL in a stock exchange filing.


Indraprastha Gas Financials

For the second quarter ending September 30, 2024, Indraprastha Gas Ltd. (IGL), the largest city gas operator in the country, reported a 19.41% year-on-year (YoY) drop in net profit at Rs 431 crore. According to a regulatory filing, Indraprastha Gas reported a net profit of Rs 534.8 crore for the corresponding quarter of the previous fiscal year. Revenue from operations rose 6.92% to Rs 3,697 crore in Q2FY25 from Rs 3,458 crore in the same period last year. Compared to Rs 656.4 crore in the same time of the previous fiscal year, EBITDA dropped 18.34% to Rs 536 crore in the second quarter of this fiscal year. In the quarter under review, the EBITDA margin was 14.5%, compared to 19% during the same period of the prior fiscal year.

Indraprastha Gas Share Price Target

"Factoring in lower margins and slower volume growth, we lower the DCF-based TP to Rs 455 (from Rs 600). For our DCF, we lower FY24-33E growth to 7% (from 7.5%) and average margin to Rs 6.5/scm (from Rs 8/scm). Our TP implies an FY26 target multiple of 19.0x, higher than the 5Y mean 1Y-fwd P/E of 18.1x. This is higher than the implied target multiple for MAHGL at 15.5x due to the use of higher terminal growth rate of 4% (2.5% for MAHGL) reflecting a larger footprint. As IGL has corrected by 25% over the past month, we now have 8% upside, and we reiterate HOLD," said BOB Capital Markets Ltd.

"Over the past five years, IGL has traded at an average one-year forward P/E of 17.9x with a one standard deviation range of 14.8x-21.0x on Bloomberg consensus. Similarly, it has traded at an average TTM P/E of 23.6x with a one standard deviation range of 17.3-29.9x based on actual earnings," as per the research analysts of BOB Capital Markets.

"We lower our DCF-based TP to Rs 455 (from Rs 600) with cut in our estimates. As our TP implies 8% upside, we downgrade our rating on IGL to HOLD from BUY. We remain positive on volume growth prospects for IGL subject to the company prioritising volume growth over margins. Though volume growth in Delhi is likely to slow due to an accelerated shift to electric vehicles, we believe that legacy GAs in UP and newer GAs will help IGL continue to deliver healthy growth over the next decade. In our view, CNG vehicles and EVs will co-exist in India over the medium term until battery technology and grid infrastructure mature. Further, IGL's recent foray into long-haul LNG vehicles as well as new category of two-wheelers open new growth avenues," the brokerage further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.


Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the Corona ep
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the Incom
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5% TDS on amounts exceedi
Read more