Indraprastha Gas Ltd.
NSE: IGLIndraprastha Gas Ltd.: A 30-second snapshot
Indraprastha Gas (IGL) trades at Rs 152.12 as of May 2026, down 23% over 12 months and 32% off its 52-week high, with the price sitting below both the 50-DMA (Rs 159.37) and 200-DMA (Rs 185.27). The trailing PE of 12.8x and forward PE of 11.1x mark a significant de-rating from historical norms, while the underlying business has posted 5-year earnings CAGR of 20.6% and maintained positive free cash flow in 4 of the last 4 tracked years. Recent news is dominated by back-to-back CNG price hikes in Delhi (May 16-17) and references to a broker downgrade following those actions.
P/E
12.8
Forward P/E
11.1
ROE
—
Debt / Equity
0.90
Profit Margin
+10.4%
Div. Yield
+3.1%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
66/100
News
8 headlines · 1 positive · 5 negative
IGL Hikes CNG Past Rs 80 Amid Oil Shock, Stock Faces Downgrade - Whalesbook
Whalesbook
Indraprastha Gas Ltd tenders EPC for 200 MW solar project with battery storage in Rajasthan - pv magazine India
pv magazine India
Indraprastha Gas Increases CNG Prices by Re 1, Marking Delhis Second Price Hike - TheWire.in
TheWire.in
CNG prices raised again as IGL hikes rates for second time in two days - Business Standard
Business Standard
IGL hikes CNG prices by Rs 2 per kg, new rates effective today; fuel prices spiked by Rs 3 per litre - MSN
MSN
Recent context
- ·IGL executed two CNG price hikes in Delhi within 48 hours (May 16-17, 2026), taking CNG above Rs 80/kg; the consecutive increases generated negative press coverage cited alongside a reference to a broker downgrade.
- ·The company tendered EPC contracts for a 200 MW solar project with battery storage in Rajasthan, signalling a diversification initiative into renewable energy infrastructure.
- ·The stock has lost 12.07% over 3 months, with resistance bands concentrated at Rs 166-Rs 173 and a single identified support level at Rs 141.74.
Strengths
- +5-year earnings CAGR of 20.6% alongside 4 of 4 FCF-positive years indicates sustained earnings conversion to cash over the medium term.
- +Forward PE of 11.1x represents a notable compression versus the trailing PE of 12.8x, reflecting analyst earnings-growth expectations already embedded in consensus estimates.
- +Dividend yield of 3.12% at the current price provides a visible income component, supported by a profit margin of 10.42% and positive FCF history.
- +Mean analyst rating of 1.7 across 30 analysts (1-5 scale, lower = more constructive) reflects a broadly constructive sell-side view of the franchise.
Weaknesses
- −Price has declined 23.22% over 12 months and 12.07% over 3 months; the 200-DMA (Rs 185.27) is approximately 22% above the current price, indicating a prolonged period of underperformance relative to the moving average.
- −News flow is skewed negative (5 negative vs 1 positive of 8 articles), with consecutive CNG price hikes in May 2026 drawing press coverage that includes reference to a broker downgrade, introducing near-term sentiment overhang.
- −Debt-to-equity of 0.903 is above levels typical for regulated gas utilities, and the flat debt trend signals no active deleveraging despite multi-year positive FCF.
- −RSI of 34.91 places the stock near the lower bound of the neutral range; the nearest support level (Rs 141.74) is 6.8% below the current price, with three resistance levels clustered between Rs 166-Rs 173.
Open questions
- ?Do the consecutive CNG price hikes reflect IGL passing through higher APM gas costs, or do they indicate underlying margin compression that could persist beyond any near-term cost normalisation?
- ?Has the city-gas distribution regulatory framework — specifically PNGRB tariff orders — changed in ways that structurally affect IGL's return on capital relative to the 5-year historical trend?
- ?The 200 MW solar EPC tender marks a departure from core gas-distribution operations; what is the capital commitment relative to existing assets, and how has management framed the return profile?
- ?Does the significant PE de-rating reflect sector-wide re-pricing of regulated utilities, a company-specific volume or margin concern, or a combination of both?
Peer comparison: Energy
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IGL | Indraprastha Gas Ltd.You're viewing | 12.8 | — | 62 |
| Industry avg | across 5 peers | 11.6 | +18.6% | 53 |
| COALINDIA | Coal India Ltd. | 9.2 | +28.1% | 77 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 9.9 | — | 54 |
| BPCL | Bharat Petroleum Corporation Ltd. | 4.9 | — | 53 |
| RELIANCE | Reliance Industries Ltd. | 22.4 | +9.1% | 29 |
| DUMMYVEDL3 | Dummy Vedanta Ltd. 3 | — | — | — |
Technical state
Current price
₹152.12
SMA 50
₹159.37
SMA 200
₹185.27
RSI (14)
34.9 (neutral)
From 52w high
-31.8%
1Y return
-23.2%
3M return
-12.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumPrice is ₹152.12, below both the 50-DMA (₹159.37) and 200-DMA (₹185.27), with a 52-week drawdown of -31.82% and a 1-year price decline of -23.22%. The stock has been below its 200-DMA for an extended period.
- medium5 of 8 recent news items are classified negative. Multiple headlines in the May 16-17 window report two consecutive CNG price hikes (totalling ~₹3/kg in two days) alongside a reference to a broker downgrade, indicating a near-term volume and margin-risk narrative in the press.
- lowDebt-to-equity of 0.903 is elevated relative to regulated-utility peers; debt trend is flat with no visible deleveraging. ROE data is unavailable for the current year, limiting full quality assessment.
- lowIGL ranks 4th of 6 on trailing PE within the Energy peer group and 2nd of 6 on quality score. One peer (DUMMYVEDL3) is a placeholder with null data, reducing the reliability of relative rankings.
Cross-section contradictions
- 5-year earnings CAGR of 20.6% with 4 of 4 FCF-positive years and a consistency score of 73 contrasts with a -23.22% 1-year price decline and a -31.82% 52-week drawdown, while recent news cites cost-pass-through hikes rather than demand destruction, leaving the valuation compression without a fully explained fundamental catalyst.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days