Citi has upgraded Indraprastha Gas (IGL) shares to “buy” from “sell”. The global financal services firm has upgraded the target price of IGL to Rs 571 per share from Rs 422 per share earlier.
However, the share price price of Indraprastha Gas, the sole supplier of CNG and piped cooking gas in the national capital, were trading 2.29 per cent lower at Rs 468.85 in the early trade.
The bank cites volume recovery, stabilising margins, abating regulatory risks and acquisitions as key reasons for the upgrade.
According to Eikon data, IGL has 13 buy, 9 hold and 2 sell ratings. According to Citi Bank, Indraprastha Gas weaving acquisitions to boost volumes.
However, for the quarter ended June 2015, the company posted net profit of Rs 101.84 crore, down 10.69 per cent, against Rs 114.03 crore in the corresponding quarter a year ago.
The share price of the company closed 5.04 per cent higher at Rs 504.05 on Thursday.