The four stocks they exited are Macpower CNC Machines, NDR Auto Components, Novartis India and RSWM, according to Dolat Capital.
Motilal Oswal’s research report on Indraprastha Gas
CNG and domestic PNG volumes for listed CGDs (IGL, MAHGL, GUJGA & ATGL) reported a 7% CAGR over the past four years, while gas production from nominated fields declined at 3% CAGR during the same period. The supply-demand imbalance is likely to continue, thereby increasing the proportion of expensive non-APM volumes in sourcing mix for CGDs. This should further lead to structural margin challenges going forward.
For Indraprastha Gas (IGL), we estimate that the 20% penetration of EVs in sales of new CNG vehicles over the next three years would result in a decline in average CNG sales volume growth to 9% from 12% in our base case. Prospects of long-term high volume growth remain even bleaker for the company. Considering both these headwinds, we reiterate our Sell rating on the stock with a TP of INR340.
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Indraprastha Gas - 16 -03 - 2023 - moti