IGL Stock Sees 27% Upside Potential as Motilal Oswal Flags Attractive Valuation
Indraprastha Gas Limited (IGL) stock has declined nearly 20% in 2026 due to crude oil price volatility, elevated input gas costs, and a depreciating Indian currency. The currency depreciation has raised the cost of imported liquified natural gas (LNG) in rupee terms.
Motilal Oswal's report believes that despite these near-term concerns, the recent correction has made the stock's valuation attractive. The brokerage maintains a 'Buy' rating for IGL with a target price of Rs.195 per share.
The N1 and N2 electrification under Delhi's EV policy will be a structural long-term negative for IGL, but Motilal Oswal notes that the near-term earnings impact could be limited for the company. The brokerage values IGL at 13x Dec'27E SA P/E and adds INR44/sh as the value of JVs to arrive at its target price.