Indraprastha Gas hits record high on good Q1 results; 1:5 stock split

The stock hit a record high of Rs 1,300, up 7% on BSE in early morning trade.

Indraprastha Gas (IGL) hit a record high of Rs 1,300, up 7% on BSE in early morning trade, after the company reported a strong set of numbers for the quarter ended June 2017 (Q1FY18). The board approved the splitting of each equity share into five.

“The board has approved the sub-division (split) of one equity share of Rs 10 into five equity shares of face value of Rs 2 each,” IGL said in a statement.

The company reported net profit of Rs 161 crore in Q1FY18, in line with an average analyst estimates, due to higher sales volume and higher other income. It had profit of Rs 148 crore in a year ago quarter.

Net sales during the quarter under review increased by 16.5% to Rs 1,049 crore against Rs 900 crore in the corresponding quarter of previous fiscal.

Analyst at Antique Stock Broking remain bullish on IGL's growth potential, given heightened environmental concerns in National Capital Region (NCR), conducive for growth of natural gas consumption, addition of the industrial town of Rewari in IGL's portfolio and recent addition of Gurgaon and expected addition of Faridabad going forward.

After a healthy FY17, when volumes grew by 13.5% YoY, there were concerns over continuation of the momentum, but a strong 13% YoY growth in 1QFY18 has put those doubts to rest, analyst said in result review.

At 10:28 am; the stock was up 6% at Rs 1,291 on BSE, as compare to 0.74% rise in the S&P BSE Sensex. A combined 568,554 shares changed hands on the counter on BSE and NSE so far.