2 days ago
Motilal Oswal Sees 27% Upside in Indraprastha Gas
Motilal Oswal thinks Indraprastha Gas shares could rise to ₹195.
The stock was recently priced at ₹152.25.
This would mean roughly 27% upside.
The company’s shares have fallen because fuel costs and imported gas costs have increased.
A weaker Indian rupee makes imported liquefied natural gas more expensive.
Delhi’s electric-vehicle policy could reduce demand for compressed natural gas over time.
However, the brokerage expects the near-term effect on earnings to be limited.
It also believes the company can maintain volume growth and that the current valuation is attractive.
Motilal Oswal maintained a Buy rating on Indraprastha Gas with a ₹195 target price.
The target implies about 27% upside from the stock’s reported ₹152.25 price.
IGL has declined 20.68% in 2026 and around 42% over two years.
The brokerage said margins may be bottoming, with volumes diversifying and 6–8% growth.
Delhi’s EV policy, higher gas costs, currency depreciation, and crude volatility remain key risks.
- Who
- Motilal Oswal and Indraprastha Gas Limited.
- What
- Motilal Oswal reiterated a Buy rating and set a ₹195 target price for IGL shares.
- Where
- The stock was discussed on the Bombay Stock Exchange, with risks linked partly to Delhi’s EV policy.
- When
- The brokerage report was released on Friday; the stock data cited was recorded at 3:29 p.m. on Friday.
- Why
- Motilal Oswal considers the valuation attractive despite cost pressures and long-term electric-vehicle risks.
Risk View
Brokerage View
Delhi EV policy
Risk View
N1 and N2 electrification under Delhi’s EV policy could be a structural long-term negative for IGL’s CNG volumes.
Brokerage View
Motilal Oswal expects the policy’s near-term impact on IGL’s earnings to remain limited.
Costs and currency
Risk View
Crude volatility, elevated input-gas costs, and rupee depreciation are pressuring the company’s outlook by raising imported LNG costs.
Brokerage View
The recent share-price correction has made IGL’s valuation attractive, according to Motilal Oswal.
Growth outlook
Risk View
Investors remain concerned that electrification could weaken future CNG demand.
Brokerage View
The brokerage points to 6–8% volume growth, 14–15% return on equity, and earnings resilience, while estimating a 14% EPS CAGR from FY26 to FY28.
Key facts
- Target price
- ₹195 per share
- Reported share price
- ₹152.25 on the Bombay Stock Exchange
- Brokerage rating
- Buy, reiterated by Motilal Oswal
- 2026 performance
- Down 20.68% so far
- Two-year performance
- Down around 42%
- 52-week range
- ₹141.60 low on April 2, 2026; ₹223.55 high on October 8, 2025
- Valuation basis
- 13x December 2027 estimated standalone P/E, plus ₹44 per share for joint ventures
Quotes
Motilal Oswal
Brokerage that issued the IGL stock assessment
“IGL currently trades below mean -1SD one-year forward P/E valuation. Excluding MNGL and CUGL, the stock is trading at 9x FY28E P/E, despite generating ~14 15% RoE and delivering 6-8% volume growth. We believe the current valuation appears to underappreciate the earnings resilience and growth potential of the business.”
livemint.com
“We value IGL at 13x Dec’27E SA P/E and add INR44/sh as the value of JVs to arrive at our TP of INR195/sh. At a 2.6% FY27E dividend yield and 14% EPS CAGR over FY26 28, we believe the valuation is attractive. Reiterate BUY.”
livemint.com
Sources
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