India's Indraprastha Gas gains as Citi flags upbeat growth prospects

Indraprastha Gas

16/06/2025 08:02

** Shares of Indraprastha Gas IGAS.NS climb 3.2% to emerge as top percentage gainer on the Nifty energy index .NIFTYENR, which is up 0.3%

** Citi Research analysts say potential disruption risks from EVs for city gas distributors (CGDs) like IGAS appear to be rapidly fading, citing local media report which said Delhi will likely relax EV transition policy

** The EV transition policy mandated that new additions to cab fleets will switch to all-electric fleets by 2030, which Citi said dampened sentiment for IGL's growth prospects

** Adds cab segment contributes to 12-15% of IGAS's CNG volumes

** Due to electrification, contribution from Delhi Transport Corp (DTC) buses dropped to 2% for IGAS vs 7-8% a few years ago - Citi

** Adds air quality mandate of directing only clean fuels in busses could partially offset losses in DTC segment for IGAS post November 2026

** Citi rates IGAS "buy", target price at 250 rupees - reflecting a 26% upside on last close

** Stock down 1.3% YTD

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))