Motilal Oswal Sees Attractive Valuation in Indraprastha Gas Stock

Indraprastha Gas Limited's stock has dropped nearly 20% so far this year due to factors such as crude oil price volatility, elevated input gas costs, and a depreciating Indian currency. The N1 and N2 electrification under Delhi's EV policy poses a long-term risk to the company's CNG volumes.

Motilal Oswal believes that despite these concerns, the recent correction has made the stock's valuation attractive. According to the brokerage firm, IGL trades below its mean one-year forward P/E valuation and has a 9x FY28E P/E multiple when excluding other gas companies. This undervaluation is attributed to the company's earnings resilience and growth potential.

Motilal Oswal maintained a 'Buy' rating for Indraprastha Gas stock with a target price of ₹195 per share, valuing IGL at 13x Dec'27E SA P/E. The brokerage firm also added INR44/sh as the value of JVs to arrive at its target price.