The MoneyControl Pro team has recommended Indraprastha Gas (IGL) on June 3 for long-term investors.
IGL underperformed the market due to COVID lockdowns and with lifting of the lockdown demand for CNG segment has improved since last quarter.
CNG contributes around 70 percent to the top line and with a price hike, this month realisations are likely to improve further.
Pre-pandemic, the company's revenue had been growing at a CAGR of 12 percent and last quarter the recovery reflected in 7 percent revenue growth and 9 percent volume growth sequentially.
The company's 30 percent revenue comes from PNG segment, which is growing at a low double-digit rate and will be a key beneficiary of India's shift towards natural gas.
The PNG segment also has been consistently seeing 20 percent growth in domestic and industrial customers.
In the special segment of ‘Moneycontrol Pro Ideas For Profit’, Nitin Sharma gets more details on the company’s performance, going forward.
Watch the video for more.
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