Shares of Indraprastha Gas (IGL) witnessed a significant decline following the approval of the ‘Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme’ by Chief Minister Arvind Kejriwal. This new policy, also known as EV Policy 2.0, legalizes electrically-operated bike taxis and introduces regulatory measures for app-based aggregators and delivery services in Delhi. The scheme is designed to promote green mobility by mandating that all cab aggregators, delivery services, and e-commerce entities transition to electric vehicles by 2030.
The approval of this scheme triggered notable trading activity on the National Stock Exchange, impacting IGL’s share price and prompting reactions from financial analysts. Jefferies India, in response to these developments, downgraded its rating for IGL from ‘buy’ to ‘hold’ and adjusted the target price downward. This reflects concerns about the potential impact of the new policy on IGL’s future business prospects and outlook.
InvestingPro data highlights certain financial indicators for IGL that potential investors should consider. The company currently has a negative Price-to-Earnings (P/E) Ratio (Adjusted) of -2.2, and its Price/Earnings to Growth (PEG) Ratio is 0.02, indicating that earnings growth may not keep pace with the stock’s price. The Price % of 52 Week High is at 14.23%, suggesting the stock is currently trading at a relatively lower price compared to its 52-week high.
Despite these challenges, it’s essential to recognize that Indraprastha Gas is a well-established player in the Gas Utilities industry, having maintained dividend payments for 20 consecutive years and consistently raised its dividend for the last six years. This demonstrates the company’s commitment to delivering value to shareholders. Moreover, IGL holds more cash than debt on its balance sheet, which provides a degree of financial stability in these uncertain times.
For more in-depth insights and real-time metrics, InvestingPro offers additional data, including information on return on invested capital, cash flows, profitability forecasts, and more to assist potential investors in making informed decisions.